Last week, more Americans filed for unemployment benefits than in any other week in American history. According to the U.S. Department of Labor, the U.S. record for the week to March 21 is more than four times the weekly U.S. record set in 1982, with nearly 3.3 million Americans applying for unemployment benefits Did.
Many states were not financially prepared for the rising unemployment rate and the concomitant increase in unemployment. Not to mention the current historical change due to the increase in unemployment. A total of 22 states have no recommended unemployment reserves, according to a report by the Ministry of Labor published in February.
“This is something people will remember. Dan White, Moody’s Analytics Head of Fiscal Policy, has never seen such numbers. According to White, 2007-2009 Similar to the recession in many states, many states need to borrow money from the federal government to cover the tab on unemployment benefits, and this time will probably ask for money sooner.
The states with the highest unemployment rate claimed that the Labor Ministry had insufficient preparedness for a recession last month. California, New York, Texas-three of the four largest states-are in the worst unemployment trust fund solvency situation. States like California, which do not have the necessary trust funds, are not eligible for interest-free federal government financing to cover unemployment benefits.
On March 17, Pennsylvania became one of the first states to order to close all operations except Life Support. That explains why Pennsylvania reported its most unemployed claim in the week. Pennsylvania is also one of the states deemed to lack sufficient unemployment reserves, making it increasingly likely that the state will first seek federal financing.
And states may need to accept more unemployment claims than previously expected. Earlier this week, Moody’s Analytics forecast that the United States will lose an estimated 5-6 million jobs in March. This includes 2.7 million unemployment for the week to March 21. The unemployment rate in March will rise further.
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