US jobless claims surge to 2-year high as unemployment spikes on coronavirus

REUTERS/Fred Prouser

• New data around weekly unemployment insurance claims offers an early glimpse at how severe of a toll coronavirus will take on the US economy.
• US jobless claims rose to 281,000 for the week ending March 14, exceeding economist estimates for a 220,000 figure.
• Visit the Business Insider homepage for more stories.

US jobless claims rose by 70,000 to 281,000 for the week ending March 14, exceeding economist estimates for a 220,000 increase. The newly released data offers an early glimpse at how severely the coronavirus outbreak will hurt the US economy.

Business closures and quarantine orders driven by the spreading virus have contributed to layoffs, leading people to file for unemployment. At least 11 states have seen skyrocketing numbers of people filing for unemployment benefits, according to The Washington Post and data rounded up by economist Jacob Robbins.

The Trump administration has proposed a $1 trillion stimulus package as a lifeline to the battered American economy. Without further action, unemployment in the US could reach 20% – double the worst figure reached during the Great Recession, Treasury Secretary Steven Mnuchin warned.

Read more: ‘We have not had a single loser’: An investment chief who’s earned up to 90% per trade during the coronavirus crash breaks down his strategy — and explains why it will profit through the election

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