Pandemic destroys 20.5m US jobs in April in historic collapse

Published May 8, 2020
In this May 7 file photo, a pedestrian walks by The Framing Gallery, closed due to the Covid-19 pandemic, in Grosse Pointe, Michigan. — AP
In this May 7 file photo, a pedestrian walks by The Framing Gallery, closed due to the Covid-19 pandemic, in Grosse Pointe, Michigan. — AP

The coronavirus lockdown wiped out 20.5 million US jobs in April, destroying nearly all the positions created in the previous decade in the world's largest economy, the country's labour department reported on Friday.

The unprecedented collapse drove the unemployment rate to 14.7 per cent — well beyond the peak hit in late 2009 during the global financial crisis — from 4.4pc in March.

And job losses in March were worse than initially reported, falling 870,000 even though the business closures mostly happened in the second half of the month.

The plunge in non-farm payroll employment was the largest ever recorded since 1939, while the jobless rate was the highest and the biggest increase since 1948, the report said.

Employment fell sharply in all major industry sectors, with particularly heavy job losses in leisure and hospitality, the first sector hit and the one bearing the brunt of the impact of the lockdowns.

However, the labour department noted that the some workers were misclassified in the report as employed when they should have been counted as laid off.

Had they been listed properly, the unemployment rate would have been nearly five percentage points higher.

Meanwhile, US President Donald Trump downplayed unprecedented US job losses, saying they were not a surprise.

“It's fully expected, there's no surprise. Somebody said, 'oh look at this,'” he said on Fox News minutes after the labour department published the figures.

“I'll bring it back,” he said.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Digital growth
Updated 25 Apr, 2024

Digital growth

Democratising digital development will catalyse a rapid, if not immediate, improvement in human development indicators for the underserved segments of the Pakistani citizenry.
Nikah rights
25 Apr, 2024

Nikah rights

THE Supreme Court recently delivered a judgement championing the rights of women within a marriage. The ruling...
Campus crackdowns
25 Apr, 2024

Campus crackdowns

WHILE most Western governments have either been gladly facilitating Israel’s genocidal war in Gaza, or meekly...
Ties with Tehran
Updated 24 Apr, 2024

Ties with Tehran

Tomorrow, if ties between Washington and Beijing nosedive, and the US asks Pakistan to reconsider CPEC, will we comply?
Working together
24 Apr, 2024

Working together

PAKISTAN’S democracy seems adrift, and no one understands this better than our politicians. The system has gone...
Farmers’ anxiety
24 Apr, 2024

Farmers’ anxiety

WHEAT prices in Punjab have plummeted far below the minimum support price owing to a bumper harvest, reckless...