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Joseph Brusuelas: Mass Unemployment Continues to Rise

Why You Should Read: The latest weekly jobless claims report brought the total number of job losses up to 38.9 million in just nine weeks, with millions more coming. RSM Chief Economist Joseph Brusuelas describes what policymakers should be doing about it. He also has a great weekly claims chart.

Key Points:

• The number of newly unemployed Americans is roughly equal to the entire population of California losing their jobs.

• Continuing claims for the week ending May 9, which will be the measurement period for the May unemployment rate, rose to 25 million.

• This data implies 26% of all those employed in February have lost their jobs since then.

• Including marginally attached and involuntary part-time workers, the real-time unemployment rate is approximately 29.4%.

• With little hiring activity, there is every reason to think total unemployment will reach 50 million in the next few months.

Bottom Line: Brusuelas would like to see political authorities find ways to bridge the gap between today and the point at which workers can return to work safely. A coronavirus testing, tracing and treatment regime that reduces public fear would help, but he is not holding his breath.