US workers seeking jobless aid near 40 million

Approximately 38.6 million Americans sought unemployment benefits since mid-March due to coronavirus pandemic. Almost a quarter of the workforce comes under the government's pandemic relief programme.

2.4 million Americans sought unemployment benefits last week, despite hopes that easing lockdown restrictions would help restart the US economy.

The weekly figures have declined since peaking at almost 6.9 million at the end of March but remain high.

The number of people remaining on benefits also continues to grow.

Treasury Secretary Steven Mnuchin warned this week that the US risked "permanent damage" if the lockdowns continued.

All 50 states in the US have started to reopen but it is not clear whether simply easing restrictions will prompt activity to rebound.

In the week ending 16 May, about 2.2 million people sought unemployment benefits under the government's pandemic relief programme, which expanded eligibility to people such as gig economy workers.

Their numbers, which are reported separately from the regular figures, are likely to grow as more states implement the programme.

"This is so tragic it is almost unfathomable," Diane Swonk, chief economist at Grant Thornton, wrote on Twitter.

Employers in the US cut more than 20 million jobs last month, sending the official unemployment rate to 14.7 percent, a sharp rise from 50-year lows of about 3.5% seen as recently as February.

Economists have warned that the rate is likely to worsen and remain elevated for several years.

(Source: BBC)