US unemployment soars to 22m as additional 5.2m file for support

Further lockdown restrictions announced in areas most heavily impacted by coronavirus

The economic costs of the coronavirus pandemic were laid bare on Thursday by new data which showed that another 5.2 million Americans filed for unemployment insurance last week.

The figures from the department of labour show that a total of 22 million Americans have lost their jobs over the past month as the virus has forced stay-at-home orders across the United States and closed millions of businesses.

By some estimates, the latest unemployment figures suggest that one in eight of all working adults in the US is now out of work.

The stark numbers emerged as President Donald Trump prepared to reveal plans to reopen the economy, most likely on a state-by-state basis, at a press conference on Thursday evening.

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But while Mr Trump has said that some states could reopen by the end of the month and is expected to announce an expansion of testing, further restrictions to extend the lockdown were announced by governors on Thursday in areas of the country most impacted by the virus.

New York governor Andrew Cuomo announced that stay-at-home restrictions would be extended until May 15th as the state continues to bear the brunt of the pandemic.

In Washington DC, the mayor also extended to May 15th the current lockdown, which has seen schools and businesses close.

Protest

Other states witnessed a growing backlash to the social-distancing measures that have resulted in colossal job losses across the country. In Michigan, demonstrators – many carrying pro-Trump signs and some carrying guns – protested in the state's capital of Lansing, arguing that the measures introduced by Democratic governor Gretchen Whitmer were ruining small businesses.

Michigan has seen some of the highest number of coronavirus cases in the country, particularly in the Detroit area. But the state is also one of the worst affected by the economic slowdown, with more than a million people joining the unemployment register in recent weeks.

The state's governor has been a high-profile presence nationally, prompting speculation that she could be a possible vice-presidential pick for Joe Biden, who looks certain to be the Democratic Party's presidential nominee.

As the US debated how best to begin an exit strategy from the stringent restrictions announced last month, the number of Covid-19 cases continued to rise.

The number of Covid-19-related deaths was approaching 29,000 on Thursday while more than 641,000 cases had been confirmed. New York has reported more than 11,000 deaths, while there have been more than 3,000 deaths in neighbouring New Jersey.

Meanwhile, a lending programme for small businesses – a key part of last month's $2.2 trillion package agreed by Congress and signed off by the president – ran out of money on Thursday, the small business administration said.

The fact that the $350 billion rescue fund, intended for companies with fewer than 500 employees, has already been depleted indicates the depth of the economic need in the country.

Efforts to extend and expand the programme have yet to yield a result, despite negotiations between congressional Democrats and Republicans and the White House in recent days.

Mr Trump took to Twitter to blame Democrats for blocking extra funds for the programme known as the paycheck protection programme (PPP).

“Democrats are blocking additional funding for the popular Paycheck Protection Program. They are killing American small businesses. Stop playing politics Dems! Support Refilling PPP NOW – it is out of funds!,” he tweeted on Thursday.

He also hit out at House speaker Nancy Pelosi, quoting a disparaging comment from Fox News personality Sean Hannity: "She is totally incompetent and controlled by the Radical Left, a weak and pathetic puppet."

Suzanne Lynch

Suzanne Lynch

Suzanne Lynch, a former Irish Times journalist, was Washington correspondent and, before that, Europe correspondent