Economy Lost 701K Jobs After Coronavirus Bite Took Hold

April 3, 2020 by Dan McCue
Economy Lost 701K Jobs After Coronavirus Bite Took Hold

WASHINGTON – The U.S. economy lost 701,000 jobs in March as the coronavirus outbreak spread, ending more than a decade of uninterrupted employment growth, the Bureau of Labor Statistics reported Friday.

The bureau’s monthly employment situation report attributed the shedding of jobs both to the effects of the coronavirus and efforts to contain it, like social distancing and stay-at-home orders from state and federal authorities.

As a result, the agency said, the nation’s unemployment rate rose to 4.4 percent in March, up from 3.5 percent in February. That is the largest one-month jump since January 1975.

The last time the employment report saw no jobs gains was October 2010.

Employment in leisure and hospitality took the biggest hit, with employers shedding 459,000 jobs, mainly in food services and drinking establishments, which dropped 417,000 jobs.

Notable declines also occurred in health care and social assistance, professional and business services, retail trade, and construction.

In the wake of government bans on social gathering, restaurants, bars, entertainment venues, recreational facilities and other businesses deemed “non-essential” have laid off millions of workers.

The Labor Department said Thursday, this led to a record 6.6 million new applicants for jobless benefits in the final week of March alone.

The coronavirus pandemic wiped out roughly two years of food service industry gains, the Bureau said.

The pandemic also claimed 29,000 hotel jobs, 7,000 travel booking and planning jobs, 46,000 retail jobs, 29,000 construction jobs, and 19,000 childcare jobs, the report said.

Despite the rough employment news, the Trump administration maintains it is a temporary situation.

“We’re going through something that we’ve never done before where the government has shut down big parts of the economy because of health reasons,” Treasury Secretary Steven Mnuchin said Thursday during a White House briefing.

“Our economy was in great shape. Our companies were in great shape.”

The federal government has already taken unprecedented measures to support the economy in the face of the worst pandemic in more than a century.

President Trump last week signed a $2 trillion economic rescue bill that included direct payments to U.S. adults, more than $350 billion in loans to small businesses and billions more in corporate and industry aid.

There could still be more action to rescue the economy ahead as Trump and House Democrats both call for another titanic, $2-trillion stimulus bill, this one targeted at infrastructure. The Federal Reserve is also under growing pressure to expand its emergency lending operations to states and cities under financial pressure from the coronavirus outbreak.

Responding to Friday’s report, House Majority Leader Steny Hoyer said as bad as it was, it did not show the full extent of the economic pain many Americans are experiencing.

“The unemployment rate,” he noted, ” only reflects data through the middle of March, before many stay-at-home orders began. ”

 “We know that our economy will not fully recover if we cannot get the coronavirus pandemic under control,” Hoyer said. “We must work together as a nation to protect those who are vulnerable, and we must do our part to prevent hospitals from becoming overwhelmed and facing impossible decisions about who ought to receive lifesaving care.” 

“Today’s unprecedented job losses will be tomorrow’s record of resurgence,” Hoyer predicted, adding that they’ll be accompanied by stories “of courage and perseverance as we banded together to defeat this virus and save countless lives.”

A+
a-
  • Economy
  • Employment
  • In The News

    Health

    Voting

    Employment

    Making Healthy Snacks a Habit When Afternoon Energy Slumps Strike at Work

    NEW YORK (AP) — When Claire Paré was a classroom teacher, working in a setting where every minute, down to... Read More

    NEW YORK (AP) — When Claire Paré was a classroom teacher, working in a setting where every minute, down to the bathroom breaks, was scheduled, she brought granola bars, fruit and protein shakes to school so she’d be prepared when hunger hits. Then she transitioned to a job... Read More

    July 8, 2025
    by Dan McCue
    Supreme Court Lifts Stay on Trump Effort to Slash Federal Workforce

    WASHINGTON — The Supreme Court on Tuesday lifted a lower court’s order that had prevented the Trump administration from moving... Read More

    WASHINGTON — The Supreme Court on Tuesday lifted a lower court’s order that had prevented the Trump administration from moving forward with planned mass layoffs and the dismantling of a number of federal agencies. In its unsigned ruling, the court said an executive order signed by... Read More

    US Employers Added 147,000 Jobs Last Month Despite Uncertainty Over Economic Policy

    (AP) — U.S. employers added 147,000 jobs in June as the American labor market continues to show surprising resilience despite... Read More

    (AP) — U.S. employers added 147,000 jobs in June as the American labor market continues to show surprising resilience despite uncertainty over President Donald Trump’s economic policies. The unemployment rate ticked down 4.1% from 4.2% in May, the Labor Department said Thursday. Hiring rose modestly from... Read More

    How to Manage ADHD at Work and Turn It Into a Strength

    NEW YORK (AP) — Jeremy Didier had taken her son to a psychologist for a possible ADHD evaluation when she spotted an... Read More

    NEW YORK (AP) — Jeremy Didier had taken her son to a psychologist for a possible ADHD evaluation when she spotted an article about women with the condition. As she read it in the waiting room, she thought to herself: They're describing me. “Lots of risk-taking, lots of... Read More

    Fewer Americans Sought Unemployment Benefits Last Week as Layoffs Remain Low

    WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell last week, the Labor Department said Thursday, a sign... Read More

    WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell last week, the Labor Department said Thursday, a sign that companies aren’t cutting many jobs. Jobless claims for the week ended June 21 dropped 10,000 to 236,000, a historically-low level. The four-week average of claims,... Read More

    Wall Street Gains Ground Following a Solid Jobs Report

    NEW YORK (AP) — Stocks rose on Wall Street Friday following a better-than-expected report on the U.S. job market. The... Read More

    NEW YORK (AP) — Stocks rose on Wall Street Friday following a better-than-expected report on the U.S. job market. The S&P 500 index rose 1.2% in morning trading. The benchmark index remains on track to notch a second consecutive winning week. The Dow Jones Industrial Average... Read More

    News From The Well
    scroll top