U.S. Economy Loses 20.5 Million Jobs In April, Unemployment Rate At 14.7%

(TheFreedomFlag.Com)- The United States economy lost a total of 20.5 million jobs in the month of April, and the unemployment rate soared to 14.7%.
Those are the main takeaways from the Bureau of Labor Statistics’ April jobs report, which it released Friday morning. The number of job cutbacks is the most severe and quick decline since the data began being tracked in 1939, and it’s the highest the unemployment rate has been since the BLS started tracking it on a monthly basis back in 1948.
The coronavirus pandemic has dealt a huge blow to employment, as state shutdown orders have shuttered businesses in almost every industry. Some of those that have been allowed to remain open have experienced cutbacks to staff, too, as they’ve dealt with significant drops in revenue.
Combined with the 870,000 jobs that were lost during March, the United States economy has now lost double the number of total jobs in the last two months than it did during the entire financial crisis, when 8.7 million jobs were lost. The unemployment rate topped off at 10% in October 2009 during that stretch.
The economy only slowly rebounded following the financial crisis that began in 2008. Following what was dubbed the Great Recession, the American economy added 22.8 million jobs over the next 10 years. But just about all of those jobs have vanished in only two months’ time.
Friday’s jobs report probably doesn’t entirely represent the current state of affairs, either — for a few reasons.
First, the jobs report and unemployment rate are trailing numbers. The statistics only count through the middle of the previous month, meaning the last two weeks of April don’t factor into the data released.
Second, the BLS only counts people as “unemployed” if they’ve been out of work and have been actively seeking new work over the last four weeks, or if they’ve been laid off temporarily but expect to be re-hired within six months. Many people who lost their jobs recently — either as permanent moves or furloughs — are not looking for new work and therefore aren’t counted.
Third, the unemployment rate also doesn’t count people who have had their hours and/or pay cut as long as they are still working, no matter how severe those two cuts may be.
The unemployment rate and job loss numbers are decent measuring sticks to give an overview of the current situation — especially when comparing to previous periods — but they do not give a true picture of the current situation. That situation is much grimmer than even this grim report shows, as millions of Americans are likely to tell you.
The big question now, of course, is what will June’s jobs report show? As states begin to re-open their economies and businesses are allowed to operate again, will it reflect in a positive way in the unemployment rate? Or will the massive layoffs and cutbacks at the end of April not be offset until deeper into the summer?