The Number Of Jobs Lost In April Was More Than Double The Total Number Of Jobs Lost During The Last Recession

Yes, you read that headline correctly.  The economic downturn of 2008 and 2009 is often referred to as “the Great Recession” because the U.S. had not experienced economic pain of that magnitude since the Great Depression of the 1930s.  Millions of Americans lost their jobs, mortgage defaults soared and Wall Street was shaken to the core.  But as bad as things were during the last recession, things are even worse now.  To say that what we are witnessing is “unprecedented” doesn’t do it justice, because what is happening to the U.S. economy in 2020 is truly, truly horrifying, and many believe that what we have experienced so far is just the beginning.

ADP has been tracking private payrolls in the United States for many, many years, and each month their payroll report is watched very carefully by economists.

Prior to this year, the worst month in the history of the ADP report was in February 2009 when 834,665 jobs were shed from U.S. private payrolls.  Needless to say, that old record just got completely shattered

Private payrolls hemorrhaged more than 20 million jobs in April as companies sliced workers amid a coronavirus-induced shutdown that took most of the U.S. economy offline, according to a report Wednesday from ADP.

In all, the decline totaled 20,236,000 — easily the worst loss in the survey’s history going back to 2002 but not as bad as the 22 million that economists surveyed by Dow Jones had been expecting. The previous record was 834,665 in February 2009 amid the financial crisis and accompanying Great Recession.

So what this means is that the number of private payroll jobs lost in the United States last month was more than 24 times greater than the previous all-time record.

In fact, the number of private payroll jobs lost last month was more than double the total number of jobs lost during the last recession

“Job losses of this scale are unprecedented,” said Ahu Yildirmaz, co-head of the ADP Research Institute, which compiles the report in conjunction with Moody’s Analytics. “The total number of job losses for the month of April alone was more than double the total jobs lost during the Great Recession.”

We have never seen an unemployment spike like this ever before, and we may never see a spike quite like it ever again.

Of course there are some people out there that have been quick to remind me that many of these job losses are “temporary” and that millions of Americans will soon be going back to work.

Yes, as states begin to end their lockdowns the U.S. economy will regain millions of the jobs that have been lost.

But there are also millions of jobs that we aren’t ever going to get back.  The following comes from a Bloomberg article entitled “Layoffs Start Turning From Temporary to Permanent Across America”

Plenty of layoffs that just a month ago were labeled “temporary” are now tagged “indefinite” or “permanent.” Alongside announcements of sweeping staff cuts by major employers such as Boeing Co. and U.S. Steel Corp. and the accelerating pace of downsizing in brick-and-mortar retailing, such notices are a sign that even as businesses continue to hope for a speedy recovery, they are starting to plan for a slow one.

I personally know quite a few people that have permanently lost their jobs, and you probably do too.

This week, we learned that Lord & Taylor plans to start the process of liquidating, and all of their employees will soon be out on the street on a permanent basis

Venerable U.S. retailer Lord & Taylor plans to liquidate inventory in its 38 department stores once restrictions to curb the spread of coronavirus are lifted as it braces for a bankruptcy process from which it does not expect to emerge, people familiar with the matter said on Tuesday.

Lord & Taylor’s preparations to liquidate its inventory as soon as its stores reopen offer a window into the grim future of a high-profile retailer – a storied department store chain founded in 1826 and billed as the oldest in the United States – that does not expect to survive the pandemic’s economic fallout.

But much, much, much more importantly, we are about to see a wave of small business failures in the United States that will absolutely dwarf anything that we have ever seen before in our history.

Governors all across America can end the lockdowns, but they can’t order people to go out and spend money.  For many months to come, fear of COVID-19 is going to prevent millions of consumers from resuming their normal economic patterns, and so small businesses all over the country will be facing greatly reduced revenues for the foreseeable future.

Needless to say, many of them aren’t going to make it and those that fail are going to have to let all of their workers go.  In an article that I just posted, I discussed a stunning new survey that discovered that 52 percent of all small business owners in the United States “expect to be out of business within six months”.

We are talking about millions of businesses that may soon be saying goodbye to all of their employees for good.

Giant corporations have the resources to make it through an extended downturn, but most small businesses do not.  It is hard enough to try to run a profitable small business even when conditions are ideal, but now this pandemic has made that task nearly impossible in many cases.

So yes, the U.S. economy will recover some of the jobs that were lost during the lockdowns, but we will also continue to bleed more jobs in the months ahead.

I know that a lot of my readers are quite eager for a return to “normal”, but we have to realize that the “old normal” is gone.

Instead, a “new normal” is starting to emerge, and on Tuesday California Governor Gavin Newsom warned that we won’t fully get there “until we get to immunity and a vaccine”

California Gov. Gavin Newsom said as many counties around the state prepare to reopen retail for curbside pickup Friday, maintaining physical-distancing measures will be crucial to reduce the risk of coronavirus spread.

“We’re not going back to normal,” said Newsom, who gave Tuesday’s press briefing from the site of a Sacramento business called Display California. “It’s a new normal with adaptations and modifications, until we get to immunity and a vaccine.”

Unfortunately, it is exceedingly unlikely that we will reach “herd immunity” in the United States before 2021, and the quest for a “vaccine” is not going to be easy.

If you doubt this, just do some research and find out how many other successful coronavirus vaccines there have been in our history.

When they tell you that an easy solution is right around the corner, they aren’t being honest with you.

Meanwhile, the U.S. economy is literally imploding all around us, and this is just the start of our troubles.

The good news is that COVID-19 is not as deadly as many were originally projecting.  Instead of millions dead, the final death toll in the U.S. will probably only be in the hundreds of thousands.

As this pandemic eventually begins to subside, use it as an opportunity to get prepared for what is coming next, because COVID-19 is definitely not the worst thing we are going to face.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

About One-Fifth Of All The Jobs In The U.S. Are Already Gone, And This Economic Depression Is Just 6 Weeks Old

In all of U.S. history we have never seen anything like this.  I have been sitting at my desk for quite a while searching for the proper words to convey the gravity of what we are facing, and to be honest it has been quite a struggle.  On Thursday, we learned that another 3.8 million Americans filed initial claims for unemployment benefits last week.  That was much higher than many experts were anticipating, because by now the initial surge of unemployment caused by the coronavirus lockdowns should have started to fade quite a bit.  But instead, the job loss tsunami continues to roll on, and at this point a total of 30.3 million Americans have filed new claims for unemployment benefits over the past six weeks.  The following comes from ABC News

Roughly 30.3 million people have now filed for jobless aid in the six weeks since the coronavirus outbreak began forcing millions of employers to close their doors and slash their workforces. That is more people than live in the New York and Chicago metropolitan areas combined, and it’s by far the worst string of layoffs on record.

According to numbers that come straight from the Federal Reserve, more than 152 million Americans were working in February, and that was an all-time high.

So losing 30.3 million jobs in six weeks means that nearly one-fifth of all jobs in the United States have officially vanished in just a month and a half.

And actually things are even worse than that, because millions of Americans still have not been able to successfully file claims because state unemployment websites have been so overloaded.  Just check out these truly alarming numbers from the Economic Policy Institute

The Economic Policy Institute found that for every 10 people who said they successfully filed a jobless claim in the previous four weeks, three to four more attempted to apply but couldn’t get through the system to file a claim.

Meanwhile, another two people didn’t even bother to try because it seemed too hard.

State unemployment websites were never designed to handle this sort of an onslaught.  For some unemployed Americans, attempting to get the benefits that they have been promised can be an exceedingly frustrating experience

Marci Oberst sat down at her computer Tuesday and embarked on what’s become a daily ritual – trying to log onto the Maryland Department of Labor’s website so she can extend her unemployment insurance.

At 9:30 AM, she was number 88,000 in line, according to the state’s labor website.

Number 88,000 in line?

How is that even possible?

Sadly, this is what an economic collapse looks like, and the months ahead are going to be exceedingly painful.

Needless to say, economic activity has come to a virtual standstill during these lockdowns, and this is really starting to show up in the numbers.  For example, Edmunds is projecting that U.S. auto sales will be down by more than half compared to last April…

The car shopping experts at Edmunds say that April will be a record down month for the auto industry due to the coronavirus (COVID-19) pandemic, forecasting that 633,260 new cars and trucks will be sold in the U.S. for an estimated seasonally adjusted annual rate (SAAR) of 7.7 million. This reflects a 52.5% decrease in sales from April 2019, and a 36.6% decrease from March 2020. Edmunds analysts note that this is the lowest-volume sales month dating back to at least 1990; the second worst month for sales in the past 30 years was January of 2009, when 655,000 vehicles were sold.

And major retailers are failing so rapidly now that it is hard to keep up with all the carnage.

The latest major victim to make headlines is J. Crew

Clothing apparel company J. Crew is preparing for a bankruptcy filing that could come as soon as this weekend, people familiar with the matter tell CNBC.

Privately held J. Crew is working to secure $400 million in financing to fund operations in bankruptcy, said the people, who requested anonymity because the information is confidential. They cautioned that timing could still slip, and plans are not yet finalized.

COVID-19 has created an environment of great fear, and as I have been warning for a very long time, financial institutions tighten the flow of credit in such an environment.

We saw this happen during the last financial crisis, and it is starting to happen again now.

All over America we are seeing lending conditions being greatly tightened, and Wall Fargo just announced that they will no longer be taking applications for HELOCs at all

Wells Fargo, one of the largest home lenders in the U.S., is stepping away from the market for home equity lines of credit because of uncertainty tied to the coronavirus pandemic.

The bank informed its mortgage personnel of the news Thursday in a conference call, according to a source, and the move was confirmed by company spokesman Tom Goyda.

I was absolutely floored when I first read that.

Our entire system depends on easy credit, and these changing conditions are going to create quite a bit of chaos for the foreseeable future.  Americans are going to find that it is much, much more difficult to be approved for home loans, auto loans and credit cards, and that is going to greatly depress economic activity.

Fear is also deeply affecting U.S. consumers, and at this point they are hoarding cash at a pace that we haven’t seen since the 1980s

Americans are so nervous about the state of the economy that they are stashing cash in the bank at a rate not seen since the first year of Ronald Reagan’s presidency.

The United States government’s Bureau of Economic Analysis reported Thursday morning that the savings rate surged to 13.1% in March — up from 8% in February.

But of course there are tens of millions of Americans that have already run through their savings and can’t hoard cash because they don’t have any left.

According to one brand new survey, many of those Americans now find themselves unable “to pay the rent, mortgage or utility bills”…

The coronavirus’ seismic hit on the U.S. economy is rattling people’s finances. Roughly 41% of working-age adults say their families have experienced a job loss, a decrease in work hours or other employment-related declines in income in recent weeks, according to a new analysis by the Urban Institute.

Underscoring the jump in financial distress around the country: More than 4 in 10 of Americans whose work was affected by the pandemic said they weren’t able to pay the rent, mortgage or utility bills; skipped medical care; or were at risk of going hungry.

Fear of COVID-19 turned out to be the “black swan event” that burst our debt-fueled economic bubble, but this economic depression would not end even if the coronavirus pandemic suddenly disappeared tomorrow.

Now that the economic dominoes are tumbling, all of the economic momentum is taking us in just one direction, and nobody is going to be able to reverse this process now that it has started.

Next week, a couple more million unemployed Americans will probably be added to our rapidly growing total, and it is just a matter of time before “great civil unrest” starts breaking out.

Our debt-fueled economy and our Ponzi scheme financial system were never going to be sustainable in the long run, and many have been warning for years that we would eventually be facing this sort of a scenario.

Now it is here, and I wish that I could tell you that everything is going to be okay and that our leaders are going to be able to put the pieces of our shattered economy back together, but I can’t.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

The Economic Numbers That Are Coming Are “Going To Be The Worst In The Post-World War II Era”

We just witnessed the largest quarterly GDP decline since the last financial crisis, and experts are warning that the figure for the second quarter will be far, far worse.  In fact, as you will see below, one expert is telling us to brace ourselves for the worst economic numbers “in the post-World War II era”.  On an annualized basis, U.S. GDP fell by 4.8 percent during the first quarter, and that was a bit worse than most economists were projecting.  And economists were also surprised that consumer spending was down 7.6 percent and business investment was down 8.6 percent during January, February and March.  Under normal circumstances, those would be absolutely horrible numbers, but these are not normal circumstances.  Yes, January and February were relatively normal, but the coronavirus shutdowns began in March and that is why these numbers are so dismal.

Unfortunately, it looks like the economic numbers for the second quarter are going to be much more depressing.  One economist that was interviewed by the New York Times believes that they will actually be the worst that our nation has seen since the end of the Second World War…

“They’re going to be the worst in our lifetime,” Dan North, chief economist for the credit insurance company Euler Hermes North America, said of the second-quarter figures. “They’re going to be the worst in the post-World War II era.”

And at this point even the Trump administration is publicly admitting that the economic numbers are going to start getting really, really bad.  On Monday, Kevin Hassett actually told CNBC that U.S. GDP could fall by up to 30 percent on an annualized basis during the second quarter…

On Monday morning, the White House economic adviser Kevin Hassett warned the second quarter could reflect a 20 to 30 percent decline – something that has not been seen since the 1930s Great Depression.

‘You’re looking at something like minus 20 percent to minus 30 percent in the second quarter. It’s a very grave shock and it’s something we need to take seriously,’ he told CNBC.

But we don’t have to wait until three months from now for numbers that are truly horrific.

On Wednesday, we learned that U.S. home sales in March were down by double digits in every region on the country

Signed contracts to purchase existing homes, referred to as pending home sales, fell 20.8% compared with February and were 16.3% lower annually, according to the National Association of Realtors.

Regionally, pending sales fell 14.5% in the Northeast for the month and were 11% lower than a year ago. In the Midwest, sales decreased 22% monthly and 12.4% annually. In the South sales dropped 19.5% for the week and 17.8% annually, and in the West they fell 26.8% weekly and 21.5% compared with a year ago.

Some states are attempting to gradually “reopen” their economies, and that is good news.

But the bad news is that officials are telling us that all of the restrictions in big states such as California and New York will not be lifted until many months from now, and that is going to greatly depress economic activity for the foreseeable future.

With economic activity so low, companies all over America are laying off workers at a staggering rate.  More than 26 million Americans have lost their jobs so far, and the layoffs just keep on rolling.  For example, we just learned that Uber is planning to let thousands of employees go

Executives at Uber are discussing plans to cut around 20% of the company’s employees, as it copes with a sharp decline in its ride-hailing business due to the coronavirus pandemic, reports The Information.

Layoffs of that magnitude, which haven’t been finalized but could be announced in stages in the coming weeks, could result in more than 5,400 of Uber’s 27,000 employees losing their jobs.

Of course it isn’t just the United States that is facing an unprecedented unemployment crisis.

According to the International Labour Organization, close to half of all the workers in the world “are in immediate danger of losing their livelihoods”…

Some 1.6 billion workers in the informal economy, representing nearly half of the global labour force, are in immediate danger of losing their livelihoods due to the coronavirus pandemic, the International Labour Organization (ILO) said on Wednesday.

The U.N. agency’s latest report sharply raised its forecast for the devastating impact on jobs and incomes of the COVID-19 disease, which has infected more than 3.1 million people globally, killed nearly 220,000 and shut down economies.

This is one of the biggest reasons why lockdowns all over the globe need to be ended as quickly as possible.  If people are not allowed to make a living, they aren’t going to have anything to feed their families.

Even in the United States, we have already seen an explosion of need that is absolutely shocking.  All over the country, people have been lining up for miles to get whatever food that local food banks are able to give them, and we witnessed more examples of this growing phenomenon on Tuesday

Masses of cars waited in line for the drive-thru food giveaway in Pico Rivera, California, as volunteers sporting face masks, gloves and high-vis jackets helped dish out supplies.

Over in Prospect, vehicles were seen snaking through the Big Butler Fairgrounds. It comes as millions of people across America lose their jobs amid the coronavirus pandemic and households have been thrown into turmoil.

If things are this bad already, what is this nation going to look like as we get even deeper into “the perfect storm”?

In recent days I have been writing quite a bit about the coming “meat shortage” that the mainstream media has been warning about, and now we are being told that a serious shortage of boneless chicken is already upon us

Goodbye, boneless chicken.

Food retailers across North America are swapping boneless chicken legs for less popular thighs and drumsticks as a wave of shutdowns at meatpacking plants has reduced supplies of sought-after cuts.

As I discussed yesterday, President Trump has decided to order meat processing facilities that were closed down because of COVID-19 to reopen, and many are hoping that this move will put a quick end to the shortages.

But on Wednesday the mainstream media was full of stories about how meat processing workers may decide to defy President Trump and refuse to go back to work…

Meat-processing plant workers are concerned about President Donald Trump’s executive order that compels plants to remain open during the coronavirus pandemic. Meat plant employees are among America’s most vulnerable workers, and some say they expect staff will refuse to come to work.

“All I know is, this is crazy to me, because I can’t see all these people going back into work,” said Donald, who works at Tyson’s Waterloo, Iowa, facility. “I don’t think people are going to go back in there.”

If fear of COVID-19 keeps a substantial percentage of workers from returning to their jobs, that could cause the emerging meat shortages to get even worse in the weeks ahead.

Of course fear of the coronavirus is paralyzing many sectors of our economy right now, and that is not going to end any time soon.

So we should expect really dismal economic numbers for the foreseeable future, and it appears exceedingly unlikely that there will be any sort of a turnaround before the election in November.

America’s next economic depression has begun, and it is going to be really, really painful.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

Are You Ready For The Great Depression Of The 2020s?

For those of you that were expecting just a “deep recession”, I am afraid that you are going to be very disappointed.  It took years for the U.S. economy to fully unravel in the 1930s, but now we have witnessed a similar level of economic devastation in just a matter of weeks.  More than 26 million Americans have already lost their jobs, economic activity has come to a standstill, people are lining up for miles at food banks all over the nation, and businesses are being permanently shuttered at a staggering pace.  But the good news is that some states will attempt to “reopen” their economies in the weeks ahead.  In most instances, there will be several stages before all of the restrictions are finally lifted, and that means that economic suffering will be stretched out for an extended period of time.  And of course if cases and deaths start spiking again we could see another wave of strict lockdowns all over the country, and needless to say that would greatly escalate this economic downturn.

At this moment, so many hard working people all over America are deeply hurting.

I personally know people that have lost their jobs, and you probably do too.  And because virtually nobody is hiring right now, it is going to be exceedingly difficult for newly unemployed workers to find other jobs.

Because it has an economy that is so dependent on the entertainment industry, Nevada is being hit particularly hard by this downturn.  The New York Times spoke to one Nevada resident named Valicia Anderson, and she hardly knows anyone that is still actually working

When Valicia Anderson starts to count the people she knows in Las Vegas who have lost their jobs, she runs out of fingers fast.

Her husband, the breadwinner of her family and a restaurant worker in the Rio casino. All 25 of his co-workers. Her grown son, in a temp agency. The technician who does her nails. The barber who cuts her husband’s hair. Her best friend, a waitress. The three servers and a manager at the TGI Friday’s that is her family’s favorite treat.

It has been estimated that the current unemployment rate in the state is “about 25 percent”, and that number is almost certainly going to go higher in the months ahead.

Down in Texas, they are also dealing with an oil crash at the same time that they are wrestling with this coronavirus pandemic, and this has created the worst budget crisis that the city of Houston has ever seen

On the same day that the price for U.S. crude oil fell to about $30 below zero — a mind-bending concept and the first time oil prices had ever turned negative — Mayor Sylvester Turner of Houston, the self-proclaimed energy capital of the world, stood before reporters. His words were grim and muffled by the black mask covering his face.

The mayor announced that city employees would soon be furloughed, but he declined to say how many. The Houston Zoo, he said, could expect to see funding deferred under what he called “the worst budget that the city will deal with in its history.”

The high paying energy industry jobs that fueled an incredible real estate boom in Texas are now disappearing by the thousands, and it is being reported that many of those that are being laid off are learning the news “during painful Zoom sessions from home”

Thousands of energy workers, some of whom only lately moved to the region to take advantage of the recent prosperity, have been laid off. Many of them were told the bad news during painful Zoom sessions from home.

Warning letters from energy companies have been flooding the Texas Workforce Commission about layoffs and furloughs: 3,500 at Halliburton, 223 at Tenaris, 184 at Baker Hughes, 102 at Diamond Offshore Drilling, 95 at Energy Transfer.

By the way, when did Zoom become such a big thing?

It seems like so many people are using it now, and I don’t understand why it is so popular.

Perhaps my readers will help me to understand this.

Getting back to the economy, at this point even the Trump administration is admitting that the unemployment rate will soon be approaching levels that “we saw during the Great Depression”

White House senior advisor Kevin Hassett says US economy is in “grave situation” and the unemployment rate could be hitting the same numbers seen during the Great Depression due to the Covid-19 pandemic.

“We’re going to be looking at an unemployment rate that approaches rates that I think we saw during the Great Depression,” Hassett told ABC’ ‘The Week’ on Sunday.

Let’s put that into perspective for a moment.

During the last recession, we thought that things were really, really bad when the unemployment rate got up to about 10 percent.

But back in 1933 the unemployment rate peaked at 25 percent, and now we are being told that we should expect something similar here in 2020.

Wow.

And of course low income Americans are being hit harder than anyone else.  Just check out these numbers

Most Americans support stay-at-home restrictions to protect public health. And yet the burden of the country’s shutdown is disproportionately falling on those least prepared to handle it: About 52 percent of low-income Americans say they or someone in their household has experienced job upheaval, compared to 43 percent of the broader adult population, the Pew Research Center found. Only 23 percent of low-income Americans say they have enough emergency funds to last them three months.

Hopefully as some states attempt “reopenings” it will help to slow down this enormous tsunami of unemployment.

But as I pointed out the other day, millions of Americans are now making much more money being unemployed than they did when they were working, and so that is going to provide an incentive for millions of Americans to stay unemployed for the foreseeable future.

And even if all of the coronavirus restrictions in the entire country were lifted tomorrow, fear of the coronavirus would cause economic activity to be greatly depressed for many months to come.

As I discussed yesterday, the meat processing industry is a perfect example of this.  Meat processing facilities are being shut down all over the nation, and one expert just told NBC News that we should expect shortages of meat in our grocery stores “around May 1″…

Beef, chicken and pork could be as scarce as toilet paper soon because so many meat processing plants have been temporarily shut down amid the coronavirus pandemic, industry experts are warning.

“We’ve just completed our third week of reduced slaughter and production,” Dennis Smith, a commodity broker/livestock analyst with Archer Financial Services in Chicago, said. “My guess is that about one week out, perhaps around May 1, shortages will begin developing at retail meat counters.”

So many of the things that we have been warning about for a long time are starting to happen, but most Americans still do not grasp the seriousness of this crisis.

All of the economic dominoes are starting to fall, and even if the remainder of this pandemic goes much more smoothly than anticipated, it will not fundamentally alter our current economic trajectory.

The “Everything Bubble” lasted far longer than it should have, but now that it has burst the pain is going to be absolutely immense.

And it is those at the bottom of the economic food chain that are going to be hit the hardest.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

We Have Never Seen An Economic Collapse Quite Like This, And It Is Largely A Self-Inflicted Wound

The rate at which the U.S. economy is unraveling is absolutely breathtaking.  On Thursday, we learned that another 4.4 million Americans filed new claims for unemployment benefits last week, and that means that a grand total of more than 26 million Americans have lost their jobs during this pandemic so far.  To get an idea of just how dramatically this record-setting unemployment spike dwarfs what we witnessed during the last recession, check out these charts.  Prior to this year, the record for new unemployment claims in a single week was just 695,800, and now each of the last five weeks has been at least four times larger than that old record.  And as I discussed in an article earlier today, millions of those workers have absolutely no incentive to go back to work any time soon, because thanks to Congress they are bringing home more money now than when they were actually working.  So even if efforts are made to return the economy “to normal”, millions of workers will want to stay home until the $600 per week “unemployment bonus” finally expires.  The sad thing is that this new economic crisis is largely a self-inflicted wound, and I will explain why that is true later in this article.

But first let’s talk about where things currently stand.  Based on the unemployment claim numbers that we have been seeing, experts are now projecting that the current rate of unemployment in the U.S. “is about 16 percent”

With a labor force that totals about 162 million people, the claims figures suggest the unemployment rate is about 16 percent, or roughly one in six Americans — significantly higher than the 10 percent peak seen during the 2008 financial crisis. The previous one-week high for jobless claims was 695,800 in 1982.

For a long time I have been warning that the next crisis would make the last recession look like a Sunday picnic, and now that has actually happened.

In addition to an unprecedented number of initial claims for unemployment benefits, we have also absolutely smashed the all-time record for the number of “continuing claims”

A person who has filed an “initial claim” for Unemployment Insurance (UI) and still doesn’t have a job a week later is added to “insured unemployment.” The number of the “insured unemployed” – often called “continued claims” – skyrocketed to 15.98 million, by far the highest in the history of the data series. The high before this Covid-19 era was 6.63 million in May of 2009.

And now that Congress has given workers a tremendous financial incentive to stay unemployed, the number of “continuing claims” is likely to keep going higher with each passing week.

Of course this isn’t just happening in the United States.  Over in Europe, business activity is falling at the fastest pace ever recorded

“The eurozone economy suffered the steepest falls in business activity and employment ever recorded during April as a result of measures taken to contain the coronavirus outbreak,” it said.

The company’s purchasing manager’s index (PMI) dived to a record low of 13.5 in April, from the previous all-time low of 29.7 in March, confirming private sector gloom that is savaging the 19-nation eurozone.

To put those numbers in perspective, any reading below 50 indicates a contraction.

Needless to say, these absolutely horrific statistics are the result of the coronavirus lockdowns, but were these lockdowns actually necessary in the first place?

As I discussed yesterday, the only reason why any sort of a lockdown should be implemented is if the hospitals in a particular area are being overwhelmed, because if people are unable to get medical treatment that could definitely push the ultimate death toll from the pandemic higher than it otherwise would have been.

But in most parts of the U.S. and Europe right now, hospitals are not being even close to overwhelmed.

Keeping everyone at home is not going to defeat this virus or end this pandemic.  When you are dealing with a virus that spreads from person to person this easily, there is no way that you are going to contain it.  In fact, the U.S. just had 31,900 newly confirmed cases in the 24 hour period that just ended even though most of the nation has already been locked down for weeks.

Yes, these lockdowns have temporarily slowed down the spread of the virus, but the lockdowns have also extended the duration of this pandemic.  Ultimately, this pandemic is never going to be over until it sweeps through the population and “herd immunity” is achieved.  And as I discussed yesterday, 70 to 90 percent of the population is going to have to develop antibodies in order to get to that point.

And if you are waiting for a “vaccine” to get us out of this mess, you are going to be waiting for a very, very long time.  There has never been a successful vaccine for any coronavirus in all of human history, and the task of trying to develop one for COVID-19 has become exceedingly more difficult now that scientists have discovered that there are 30 different strains of the virus.

So the truth is that this outbreak is going to rip through our population, and nothing that our politicians can do will be able to stop that from happening.

But the good news is that new numbers from New York seem to indicate that we are closer to “herd immunity” than we previously thought…

Preliminary results from New York’s first coronavirus antibody study show nearly 14 percent tested positive, meaning they had the virus at some point and recovered, Gov. Andrew Cuomo said Thursday. That equates to 2.7 million infections statewide — more than 10 times the state’s confirmed cases.

The study, part of Cuomo’s “aggressive” antibody testing launched earlier this week, is based on 3,000 random samples from 40 locations in 19 counties. While the preliminary data suggests much more widespread infection, it means New York’s mortality rate is much lower than previously thought.

However, another study that was conducted in L.A. County found that only 4 percent of their residents had developed antibodies, and that is probably more representative of the nation as a whole.

In any event, everyone agrees that the vast majority of the U.S. population has not developed antibodies, and that means that there will be many more cases and many more deaths in the months ahead.

And that is going to happen no matter how our politicians respond to this crisis.

So as long as our hospitals are not being overwhelmed, there isn’t a need for any lockdowns.  The final case total and the final death toll will be roughly the same whether there are lockdowns or not.

But these lockdowns are definitely killing our economy, and tens of millions of American workers now find themselves unemployed.

And if we continue to try to keep the U.S. economy shut down for a few more months, the economic damage will be incalculable.

Please don’t misunderstand what I am saying.  I am not saying that we should sacrifice lives in order to save the economy.  What I am saying is that about the same number of people are eventually going to die whether we have the lockdowns or not.  And if we can’t handle this, how in the world are we going to deal with what else is coming?

If you are elderly, have a compromised immune system or are in some other high risk group, you are going to have to quarantine yourself for the foreseeable future, but that would be true whether there are lockdowns or not.  The mortality rates for high risk groups are much, much higher than for the general population as a whole, and the danger is very real.

But everyone else should be allowed to get back to work, because most of the population is eventually going to catch this virus no matter what we do.  As long as our hospitals can handle it, we should proceed with life as normal.

Unfortunately, that isn’t going to happen.  Most of the current lockdowns are going to remain in place for quite some time, and this new economic depression is just going to get deeper and deeper.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

Killed By The Coronavirus Lockdowns: 1000s Of U.S. Businesses That Were Shut Down Will Be Closed Permanently

This economic downturn is turning out to be far deeper and far more severe than most experts were originally anticipating.  More than 22 million Americans have filed claims for unemployment benefits, and economists are telling us that the U.S. economy is contracting at the fastest rate that we have seen since the Second World War.  We are already starting to see some high profile companies move toward bankruptcy, but the real story is what is happening to thousands upon thousands of small and mid-size businesses because of the lockdowns.  Many of them were barely surviving even before this pandemic, and now these lockdowns have delivered a death blow.

The restaurant industry is a perfect example.  Prior to the pandemic, there were more than a million restaurants in the United States, and about half of them were independent.  Those independent restaurants employed approximately 11 million workers, and now the vast majority of those workers have been laid off.

Once the lockdowns are over, it would be wonderful if all of those independent restaurants would spring back to life, but the results of a recent survey suggest that simply is not going to happen.  In fact, that survey found that 28 percent of all independent restaurants are probably not going to survive if the lockdowns last for another month…

A survey released Thursday by the James Beard Association found independent restaurants laid off 91% of their hourly employees and nearly 70% of salaried employees as of April 13 – double-digit increases in both categories since March. The poll of 1,400 small and independent restaurants found 38% of have closed temporarily or permanently, and 77% have seen their sales drop in half or worse.

Perhaps most troubling: 28% of restaurants said they don’t believe they can survive another month of closure, and only 1 out of 5 are certain they can sustain their businesses until normal operations can resume.

28 percent of 500,000 is 140,000, and so if these lockdowns are not lifted soon we could be facing a scenario is which tens of thousands of independent restaurants are lost forever.

Of course a lot of restaurants that do reopen will face a really tough struggle because fear of the coronavirus is going to keep customers away for the foreseeable future.  So even if all of the lockdowns were lifted tomorrow, the restaurant industry would still not fully recover.

Sadly, the same could be said for the fitness industry.  In fact, we just learned that one of the biggest fitness chains in the nation is getting ready to file for bankruptcy

Gym chain 24 Hour Fitness is working with advisors at investment bank Lazard and law firm Weil, Gotshal & Manges to weigh options including a bankruptcy that could come as soon as the next few months, people familiar with the matter tell CNBC.

The chain is grappling with a heavy debt load, deteriorating performance and a coronavirus pandemic that forced it to shut its more than 400 clubs.

Yes, a certain segment of the population is quite eager to resume all of their normal pre-pandemic activities, but even a 20 or 30 percent drop off in revenue will be fatal for many gyms.

And the truth is that a lot of people are simply not going to be in the mood to share exercise equipment with others for a long time to come.

The entertainment, tourism and retail industries have also been hit extremely hard by this pandemic.  The other day I was quite stunned when I learned that Neiman Marcus “is reportedly ready to file bankruptcy”

Neiman Marcus Group, one of the largest retailers in the United States, is reportedly ready to file bankruptcy amid the COVD-19 pandemic after defaulting millions in bond payments last week and furloughing 14,000 employees.

Neiman Marcus would become the first major US department store to crumble amidst the economic set backs from the coronavirus outbreak.

No, things are definitely not going to be returning to “normal” in America, and there will be a lot more big corporate names among the victims in the days to come.

At this point, even some of the most prominent corporations in the entire country are “indefinitely” sidelining their workers

Indefinite furloughs began this weekend for more than 100,000 Disney, Best Buy and CarMax workers as businesses make cuts to survive the coronavirus pandemic and subsequent mandatory closures.

But most Americans are not in any position to handle “indefinite furloughs”.

In fact, one survey discovered that a whopping 50 percent of all Americans will run through their savings “by the end of April”

One of the largest concerns on most homeowners minds right now is how they are going to pay bills — specifically their monthly mortgage payments. 50% of Americans reported their savings will run out by the end of April. Prior to the COVID-19 outbreak, 30% of homeowners had less than $1,000 in an emergency fund, with 22% reporting they didn’t have enough in savings to cover their mortgage payment for one month.

Just like during the last recession, countless numbers of Americans will go from living a comfortable middle class lifestyle to being desperately needy in just a matter of weeks.

I have been writing a lot about the absolutely massive lines that we have been seeing at food banks all over the nation, and we just witnessed another example in Miami.  In one of the wealthiest areas of the entire city, vehicles were lined up for a mile as people waited patiently to receive handouts from a local food bank…

Talk about a Norman Rockwell painting idea come to life — a parade of cars filled with hungry people in Miami … smack dab in the middle of two of the city’s ritziest hotels.

Check out this surreal scene down in Miami Beach, where a MILE-long line of cars were arranged in a giant U-curve in between the W Hotel and Setai Hotel — two of MB’s most high-end go-to spots for celebrity out-of-towners … like Kim K, Justin Bieber and more.

You can see photos from that event right here, and if you look closely you will see that some of those vehicles are quite nice.

As I have warned so many times over the years, if you don’t have any sort of a financial cushion you can “suddenly” find yourself in a whole lot of trouble when disaster finally strikes.

Unfortunately, we have now entered a time when there will be one crisis after another, and every new crisis will significantly escalate our woes.

For a very long time, there have been very loud warnings that our debt-fueled economic bubble would burst, and now it has happened.

The road ahead is going to be filled with immense pain, and most Americans are not going to be able to handle it.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

This Is The Worst Employment Collapse In U.S. History By A Very Wide Margin

We have never seen an “employment apocalypse” in the United States like we are witnessing right now, and it is not going to end any time soon.  Over the past several days, “coronavirus shutdowns” have officially been extended all over the nation, and the longer these shutdowns last the more jobs our economy is going to lose.  And because most Americans were living paycheck to paycheck before this pandemic hit us, many unemployed workers are already unable to pay their bills.  Yes, our authorities may be slowing down the spread of the virus, but in the process they have absolutely killed the economy.  On Thursday, I was stunned to learn that another 5.2 million Americans filed initial claims for unemployment benefits last week.  That brings the grand total for the last four weekly reports “to a staggering 22 million”

About 5.2 million people filed for unemployment benefits last week, the Labor Department said Thursday.  Jobless claims provide the best measure of layoffs across the country. Economists surveyed by Bloomberg had estimated that 5.5 million Americans would file initial applications for unemployment insurance last week.

That brings the total claims over the past four weeks to a staggering 22 million. By comparison, the labor market added 21.5 million jobs since the Great Recession.

Just think about that.

22 million jobs wiped out in one month.

And the true number of jobs lost is actually even higher, because not everyone that loses a job files for unemployment benefits.

Prior to this year, the highest number of initial claims for unemployment benefits during any four week period that we had ever witnessed was 2.7 million during the fall of 1982.

So 22 million in four weeks truly puts us in uncharted territory.  Just look at this chart.

We aren’t just beating the old records, we are absolutely obliterating them.

You know that things are really, really bad when even NBC News sounds just like The Economic Collapse Blog…

“The labor market is obviously very, very important, and has a high correlation with what is going on in the economy,” Jay Bryson, the acting chief economist at Wells Fargo, told NBC News. “It is showing us what I think we all know, that the economy is falling off a cliff at an unprecedented rate.”

In other words, the chief economist at Wells Fargo is saying that the U.S. economy is completely and utterly collapsing.

According to Zero Hedge, “we have lost 710 jobs for every confirmed US death from COVID-19 (30,985).”  Our politicians have prioritized saving lives over saving the economy, and many people out there seem convinced that was the right choice, but the economic devastation has been immense.

The socialist “stimulus payments” and unemployment benefits will help all of these unemployed workers temporarily, but the payments from the federal government are supposedly just a one time deal, and it won’t be too long before many states start running out of unemployment money

Six states — including New York, which has the highest number of cases in the US — can only fund up to 10 weeks of unemployment benefits from their state coffers before money runs out and they have to turn to the federal government for additional funding, according to a recent estimate from the Tax Foundation.

Another 15 state trust funds don’t meet the federal Department of Labor’s recommended minimum solvency standard, which requires being able to pay benefits for a year in an economic downturn similar to the Great Recession.

So what will the federal government do once we get to that point?

I imagine that Congress will eventually want to borrow and spend trillions more dollars that we don’t have, and it is likely that “conservatives” and “liberals” will both be quite eager to vote for another pork-filled bill.

But it is probably going to take some time for Congress to get through the process of passing another crazy spending package, and meanwhile deep economic suffering is erupting all over the nation.

On Thursday, vehicles were lined up for two miles in Miramar, Florida as needy individuals waited for hours to get handouts from a local food bank.  We are starting to see food lines like this all over the country, and if things are this bad already, what will things look like a few months from now?

The chief economist at Grant Thornton in Chicago is calling this “the deepest, fastest, most broad-based recession we’ve ever seen”, and I can’t argue with that assessment one bit.

For a moment, I would like for you to consider just a few of the economic news items that we have seen over the past few days…

-United Airlines has reduced its schedule of flights for May and June “by about 90%” as demand for air travel has absolutely plummeted.

-U.S. retail sales were down 8.7 percent in March.

-J.C. Penney is “considering bankruptcy”.

-Housing starts just collapsed by the most that we have seen in 36 years.

-The mayor of Los Angeles says that large gatherings in his city will likely be banned until 2021.

-Facebook has canceled all large events until June 2021.

-Chinese GDP just experienced the largest drop ever recorded.

Of course nearly every nation will soon report absolutely staggering declines in GDP.  The shutdowns have brought economic activity to a standstill all over the globe, and no region is immune.

The following is how the Daily Mail is describing the current state of global trade…

The coronavirus pandemic is crippling global trade because crews on transport ships have been stranded at sea for months and food processing plants have been forced to close, threatening to bring the world’s supply chain to a grinding halt.

Shipping workers at sea are denied entry into ports, truckers can’t get to work in some countries or are confronted with complications at borders, food plants are closing and farm harvests going to waste in the crisis.

Does that sound like a “perfect storm” to you?

Well, the truth is that it is just getting started.

Eventually this pandemic will subside, but now that all of the economic dominoes are starting to tumble it will be exceedingly difficult to reverse that momentum.

And as I pointed out the other day, most Americans are not likely to resume all of their normal daily activities once the restrictions are finally lifted, and fear of this virus is going to be a dominant economic force for the foreseeable future.

What all of this means is that we are facing incredible economic pain for the short-term, the mid-term and for a long time to come.

At this point, we should no longer speak of “economic collapse” as something that will happen in the future.

It is here.

It is now.

And it is going to get a lot worse.

About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with all many people as we possibly can.

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