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Unemployment Claims Show More Jobs Are Vanishing: Live Updates Unemployment Claims Show More Jobs Are Vanishing: Live Updates
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The economic challenges posed by the coronavirus pandemic are especially acute for the poorest Americans, according to a new Federal Reserve survey released Thursday.The economic challenges posed by the coronavirus pandemic are especially acute for the poorest Americans, according to a new Federal Reserve survey released Thursday.
Many Americans came into the nationwide lockdown with limited savings, despite gains made over the course of a record-long economic expansion. At the end of 2019, three in 10 adults said they could not cover three months’ worth of expenses with savings or borrowing in the case of a job loss, “indicating that they were not prepared for the current financial challenges,” the central bank said.Many Americans came into the nationwide lockdown with limited savings, despite gains made over the course of a record-long economic expansion. At the end of 2019, three in 10 adults said they could not cover three months’ worth of expenses with savings or borrowing in the case of a job loss, “indicating that they were not prepared for the current financial challenges,” the central bank said.
One in five people who were working in February reported that they lost a job or were furloughed in March or the beginning of April 2020, the data showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.One in five people who were working in February reported that they lost a job or were furloughed in March or the beginning of April 2020, the data showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.
The United States economy began slowing in March, as state and local governments instituted stay-at-home orders to tame the coronavirus’s rapid spread. That has caused the steepest growth decline in the United States’s postwar history. Consumer spending has plummeted as stores and restaurants closed, and mass layoffs have become a feature of everyday life. Nearly three million people filed for unemployment benefits last week, pushing the two-month tally over 36 million.The United States economy began slowing in March, as state and local governments instituted stay-at-home orders to tame the coronavirus’s rapid spread. That has caused the steepest growth decline in the United States’s postwar history. Consumer spending has plummeted as stores and restaurants closed, and mass layoffs have become a feature of everyday life. Nearly three million people filed for unemployment benefits last week, pushing the two-month tally over 36 million.
Delta Air Lines plans to retire all its Boeing 777 jets, a fleet that helped it become a global airline, as it prepares to shrink its network for up to three years to ride out what is expected to be a long and choppy recovery, especially for international travel.Delta Air Lines plans to retire all its Boeing 777 jets, a fleet that helped it become a global airline, as it prepares to shrink its network for up to three years to ride out what is expected to be a long and choppy recovery, especially for international travel.
“Retiring a fleet as iconic as the 777 is not an easy decision,” Delta’s chief executive, Ed Bastian, told employees in a note. “The 777 played an important role with Delta since 1999, allowing us to open new long-haul markets and grow our international network as we transformed into a global airline.”“Retiring a fleet as iconic as the 777 is not an easy decision,” Delta’s chief executive, Ed Bastian, told employees in a note. “The 777 played an important role with Delta since 1999, allowing us to open new long-haul markets and grow our international network as we transformed into a global airline.”
Delta said it would retire its 18 wide-body 777s by the end of the year. Once demand for international travel recovers, the airline plans to use newer, more fuel-efficient aircraft on long flights.Delta said it would retire its 18 wide-body 777s by the end of the year. Once demand for international travel recovers, the airline plans to use newer, more fuel-efficient aircraft on long flights.
Delta is losing about $50 million a day, a figure that it hopes to bring to zero by the end of the year. It has already moved up plans to retire two other fleets, the MD-88 and MD-90, and has idled more than 650 jets in all.Delta is losing about $50 million a day, a figure that it hopes to bring to zero by the end of the year. It has already moved up plans to retire two other fleets, the MD-88 and MD-90, and has idled more than 650 jets in all.
The airline also told its pilots on Thursday that it expected to have 7,000 more pilots than needed this fall, when government funding for airline workers expires. But Delta, which employs about 14,000 pilots, said it was focusing on longer-term staffing needs and was working to limit future furloughs.The airline also told its pilots on Thursday that it expected to have 7,000 more pilots than needed this fall, when government funding for airline workers expires. But Delta, which employs about 14,000 pilots, said it was focusing on longer-term staffing needs and was working to limit future furloughs.
Delta has paid out $1.2 billion in ticket refunds since the crisis began, and more than 41,000 employees have agreed to take some form of unpaid leave of absence.Delta has paid out $1.2 billion in ticket refunds since the crisis began, and more than 41,000 employees have agreed to take some form of unpaid leave of absence.
Quartz, a business news site with offices around the world, is cutting nearly half of its staff in a substantial restructuring after the economic fallout of the coronavirus pandemic drastically reduced its advertising revenue.Quartz, a business news site with offices around the world, is cutting nearly half of its staff in a substantial restructuring after the economic fallout of the coronavirus pandemic drastically reduced its advertising revenue.
Quartz’s owner, the Japanese financial intelligence firm Uzabase, announced the layoffs in a public filing on Thursday. The company said that approximately 40 percent of Quartz staff members would lose their jobs, and the cuts would be focused on its advertising team. Quartz had 188 employees at the end of last year, Uzabase said.Quartz’s owner, the Japanese financial intelligence firm Uzabase, announced the layoffs in a public filing on Thursday. The company said that approximately 40 percent of Quartz staff members would lose their jobs, and the cuts would be focused on its advertising team. Quartz had 188 employees at the end of last year, Uzabase said.
Zach Seward, the chief executive, said in a note to the staff that approximately 80 roles would be eliminated. A spokesman for the NewsGuild, which represents 43 journalists working at Quartz, said about half its members would lose their jobs.Zach Seward, the chief executive, said in a note to the staff that approximately 80 roles would be eliminated. A spokesman for the NewsGuild, which represents 43 journalists working at Quartz, said about half its members would lose their jobs.
Mr. Seward said the cuts were part of a long-term strategy to make Quartz sustainable by retrenching to a business model that places a premium on revenue from subscriptions rather than advertising.Mr. Seward said the cuts were part of a long-term strategy to make Quartz sustainable by retrenching to a business model that places a premium on revenue from subscriptions rather than advertising.
Uzabase bought Quartz from Atlantic Media in 2018.Uzabase bought Quartz from Atlantic Media in 2018.
Nearly three million more Americans filed for unemployment benefits last week, continuing a devastating stretch of new jobless claims, but a White House economic adviser, Kevin Hassett, told reporters on Thursday that Trump administration officials saw signs of an economic rebound in the numbers.Nearly three million more Americans filed for unemployment benefits last week, continuing a devastating stretch of new jobless claims, but a White House economic adviser, Kevin Hassett, told reporters on Thursday that Trump administration officials saw signs of an economic rebound in the numbers.
Mr. Hassett called the Labor Department’s report of jobless claims “better than expected” and said it likely showed improving economic strength in states where officials had begun to ease restrictions on economic activity imposed as the coronavirus outbreak spread rapidly over the last two months.Mr. Hassett called the Labor Department’s report of jobless claims “better than expected” and said it likely showed improving economic strength in states where officials had begun to ease restrictions on economic activity imposed as the coronavirus outbreak spread rapidly over the last two months.
The claims totaled 2.98 million in the week through May 9, the data released on Thursday showed. That’s down from the prior week, but still worse than what many economists had expected.The claims totaled 2.98 million in the week through May 9, the data released on Thursday showed. That’s down from the prior week, but still worse than what many economists had expected.
“The fact that we came in under three million suggests that the turning on of the economy is beginning, and it’s beginning to show up in the data,” Mr. Hassett said.“The fact that we came in under three million suggests that the turning on of the economy is beginning, and it’s beginning to show up in the data,” Mr. Hassett said.
The coming weeks, Mr. Hassett said, should begin to show the degree to which activity is resuming in states that lift lockdowns, compared to states that keep them in place.The coming weeks, Mr. Hassett said, should begin to show the degree to which activity is resuming in states that lift lockdowns, compared to states that keep them in place.
“My fear is that the places that stay closed could have skyrocketing claims” for jobless benefits, he said, while “the places that turn back on will have claims go back down toward normal.”“My fear is that the places that stay closed could have skyrocketing claims” for jobless benefits, he said, while “the places that turn back on will have claims go back down toward normal.”
Many analysts did not share Mr. Hassett’s optimistic read of the new data.Many analysts did not share Mr. Hassett’s optimistic read of the new data.
The number of new claims exceeded the consensus forecast, which had been 2.5 million for the week. A research note from Pantheon Macroeconomics declared the number “a smaller drop than we hoped for,” and the researchers said they expected the number of new claims will not fall below one million a week until the end of June, a delay from their previous forecast of mid-June.The number of new claims exceeded the consensus forecast, which had been 2.5 million for the week. A research note from Pantheon Macroeconomics declared the number “a smaller drop than we hoped for,” and the researchers said they expected the number of new claims will not fall below one million a week until the end of June, a delay from their previous forecast of mid-June.
Fatih Birol, the chief of the International Energy Agency, said on Thursday that he saw “signs of a gradual rebalancing” in the oil market that has been ravaged by the coronavirus pandemic, but that the process of bringing supply in line with demand was still “fragile.”Fatih Birol, the chief of the International Energy Agency, said on Thursday that he saw “signs of a gradual rebalancing” in the oil market that has been ravaged by the coronavirus pandemic, but that the process of bringing supply in line with demand was still “fragile.”
Mr. Birol, discussing the agency’s monthly report, said that this year was likely to prove to be “the worst” in history for the oil market, with April probably the worst month.Mr. Birol, discussing the agency’s monthly report, said that this year was likely to prove to be “the worst” in history for the oil market, with April probably the worst month.
Global demand for oil fell in April to about 25 percent below its normal level, the agency said, but it is expected to slowly recover as more countries ease lockdown measures. The agency estimated that by the end of May, 2.8 billion people would be living under “some form of confinement,” down from a peak of four billion people.Global demand for oil fell in April to about 25 percent below its normal level, the agency said, but it is expected to slowly recover as more countries ease lockdown measures. The agency estimated that by the end of May, 2.8 billion people would be living under “some form of confinement,” down from a peak of four billion people.
At the same time, oil producers are making deeper and more rapid supply cuts than some analysts had expected. The agency forecast that demand may substantially outpace supply in the second half of this year, working off some of the enormous glut that has built up.At the same time, oil producers are making deeper and more rapid supply cuts than some analysts had expected. The agency forecast that demand may substantially outpace supply in the second half of this year, working off some of the enormous glut that has built up.
Oil prices have recovered in recent days with Brent crude, the international benchmark, trading around $30 a barrel, well above its low of about $19 a barrel in late April but still down more than 50 percent for the year. The American standard, West Texas Intermediate, which briefly fell into negative prices, is trading about $26 a barrel.Oil prices have recovered in recent days with Brent crude, the international benchmark, trading around $30 a barrel, well above its low of about $19 a barrel in late April but still down more than 50 percent for the year. The American standard, West Texas Intermediate, which briefly fell into negative prices, is trading about $26 a barrel.
The weekly count of new unemployment claims has been declining since late March, but job losses from the coronavirus pandemic continue to mount. The two month tally of workers who joined the U.S. unemployment rolls is now more than 36 million.The weekly count of new unemployment claims has been declining since late March, but job losses from the coronavirus pandemic continue to mount. The two month tally of workers who joined the U.S. unemployment rolls is now more than 36 million.
Michelle Meyer, head of U.S. economics at Bank of America, said that even with businesses reopening in some states, she doubted that callbacks to work outnumbered additional layoffs from other sectors. The slowdown has been rippling beyond the early shutdowns in retail and hospitality to professional business services, manufacturing and health care.Michelle Meyer, head of U.S. economics at Bank of America, said that even with businesses reopening in some states, she doubted that callbacks to work outnumbered additional layoffs from other sectors. The slowdown has been rippling beyond the early shutdowns in retail and hospitality to professional business services, manufacturing and health care.
“In a sense, it’s a rolling shock,” she said.“In a sense, it’s a rolling shock,” she said.
Jerome H. Powell, the Federal Reserve chair, said Wednesday that Fed research being released Thursday would show that in households making less than $40,000 a year, about 40 percent of those working in February lost their jobs in March.Jerome H. Powell, the Federal Reserve chair, said Wednesday that Fed research being released Thursday would show that in households making less than $40,000 a year, about 40 percent of those working in February lost their jobs in March.
State unemployment insurance and emergency federal relief were supposed to tide households over during the shutdown. But several states have a backlog of claims, and applicants continue to complain of being unable to reach overloaded state agencies.State unemployment insurance and emergency federal relief were supposed to tide households over during the shutdown. But several states have a backlog of claims, and applicants continue to complain of being unable to reach overloaded state agencies.
According to a poll for The New York Times in early May by the online research firm SurveyMonkey, more than half of those applying for unemployment benefits in recent weeks were unsuccessful.According to a poll for The New York Times in early May by the online research firm SurveyMonkey, more than half of those applying for unemployment benefits in recent weeks were unsuccessful.
Stocks fell on Thursday, as investors continued to assess the lasting damage they face from the coronavirus pandemic. Stocks were volatile on Thursday, as investors continued to assess the lasting damage they face from the coronavirus pandemic.
The S&P 500 was about half a percent lower, having recovered from an early drop of nearly 2 percent. Shares in Europe and Asia fell sharply. The S&P 500 was slightly higher by Thursday afternoon, having recovered from an early drop of nearly 2 percent. Shares in Europe and Asia fell sharply.
Stocks have been declining this week as investors heard a drumbeat of warnings about the pandemic and its long-term impact.Stocks have been declining this week as investors heard a drumbeat of warnings about the pandemic and its long-term impact.
On Tuesday, Dr. Anthony S. Fauci spoke about the serious risk of a new outbreak if the economy was reopened too quickly. On Wednesday, Federal Reserve chair, Jerome H. Powell, warned of permanent damage to the economy if Congress and the White House did not provide sufficient financial support to prevent a wave of bankruptcies and prolonged joblessness.On Tuesday, Dr. Anthony S. Fauci spoke about the serious risk of a new outbreak if the economy was reopened too quickly. On Wednesday, Federal Reserve chair, Jerome H. Powell, warned of permanent damage to the economy if Congress and the White House did not provide sufficient financial support to prevent a wave of bankruptcies and prolonged joblessness.
On Thursday, the government’s latest report on unemployment claims showed that millions of workers are still losing their jobs.On Thursday, the government’s latest report on unemployment claims showed that millions of workers are still losing their jobs.
The recent declines mean this week could be the worst for U.S. stocks since mid-March, although it isn’t nearly as substantial as it was then. The S&P 500 is down about 4 percent this week, compared with a 15 percent drop in the week that ended March 20. The recent declines mean this week could be the worst for U.S. stocks since mid-March, although it isn’t nearly as substantial as it was then. The S&P 500 is down nearly 4 percent this week, compared with a 15 percent drop in the week that ended March 20.
That’s in part because efforts by the Federal Reserve and lawmakers in Washington, including a $2 trillion economic rescue package, have helped calm investors’ nerves.That’s in part because efforts by the Federal Reserve and lawmakers in Washington, including a $2 trillion economic rescue package, have helped calm investors’ nerves.
Homeowners who have temporarily paused their federally backed mortgages because of virus-related hardships have been wondering if they could push those missed payments to the end of their loan. On Wednesday, federal regulators provided an answer: Yes.Homeowners who have temporarily paused their federally backed mortgages because of virus-related hardships have been wondering if they could push those missed payments to the end of their loan. On Wednesday, federal regulators provided an answer: Yes.
Borrowers who reach their final payoff date and still owe the unpaid amount will have to pay it in a lump sum at that time, according to the Federal Housing Finance Agency, which oversees mortgages guaranteed by Fannie Mae and Freddie Mac. If they sell or refinance their homes, they’ll have to pay what they owe then.Borrowers who reach their final payoff date and still owe the unpaid amount will have to pay it in a lump sum at that time, according to the Federal Housing Finance Agency, which oversees mortgages guaranteed by Fannie Mae and Freddie Mac. If they sell or refinance their homes, they’ll have to pay what they owe then.
Under the CARES Act, homeowners whose mortgages are backed by the federal government are permitted to skip their payments for up to a year.Under the CARES Act, homeowners whose mortgages are backed by the federal government are permitted to skip their payments for up to a year.
Homeowners owe the skipped amount in full, and the agency is encouraging borrowers to pay it as soon as they’re able. But even if they have to push the payment to the end of their loan, homeowners will not be charged extra fees or interest on the balance.Homeowners owe the skipped amount in full, and the agency is encouraging borrowers to pay it as soon as they’re able. But even if they have to push the payment to the end of their loan, homeowners will not be charged extra fees or interest on the balance.
There is one caveat: Housing officials said borrowers who were not current on their loans, or were more than 31 days delinquent before March 1, would not be eligible.There is one caveat: Housing officials said borrowers who were not current on their loans, or were more than 31 days delinquent before March 1, would not be eligible.
A few months ago, everything seemed to be going Elon Musk’s way. A government official in France said on Thursday that it would be unacceptable for the French drug giant Sanofi to give the United States early access to any Covid-19 vaccine it develops, after comments by the company’s chief executive suggested that the United States would be first in line because it helped finance the research.
After a turbulent start to 2019, Tesla, the electric car company he helped found, had reported a profit two quarters in a row and its stock was surging. Mr. Musk claimed vindication by defeating a defamation lawsuit and was staying out of trouble on Twitter. Tesla was on a tear. “For us, it would be unacceptable if another country had privileged access under a financial pretext,” Agnès Pannier-Runacher, the junior economy minister, told Sud Radio.
But the coronavirus set Mr. Musk off. His dreams of dominating the car industry were postponed when Alameda County, Calif., forced Tesla’s Fremont plant, which brings in most of the company’s revenue, to shut down in late March. Paul Hudson, Sanofi’s chief executive, told Bloomberg News on Wednesday that “the U.S. government has the right to the largest pre-order because it’s invested in taking the risk.”
That frustrated Mr. Musk, who had long dismissed the seriousness of the coronavirus — promoting unproven research, suggesting that Covid-19 deaths were overstated and predicting that there would be zero new cases in the United States by the end of April. (There were almost 32,000.) Sanofi has received $30 million from an office of the U.S. Department of Health and Human Services, Mr. Hudson said, adding that Europe needed to step up its vaccine investments.
His anger boiled over last week, as he threatened to move the factory out of California and sued the county in federal court, Niraj Chokshi reports. This week, Mr. Musk officially reopened the plant, to the frustration of some workers and county officials who had been negotiating a reopening plan with Tesla for weeks. Sanofi later said in a statement that it was “committed in these unprecedented circumstances to make our vaccine accessible to everyone.” It noted that it had manufacturing plants around the world, and that production of a potential vaccine in the United States would mainly go to the U.S. market, “the rest of the manufacturing capacity will cover Europe and the rest of the world.”
As the plant reopened, Mr. Musk thanked employees for making “the factory come back to life.” INFORMATION WARSocial media is already filling up with misinformation about a Covid-19 vaccine, months or years before one even exists.
“I have vastly more respect for someone who takes pride in doing a good job,” he said in an email, “whatever the profession, than some rich or famous person who does nothing useful.”
Nissan said the head of its North American operation, José Luis Valls, had resigned for “personal reasons” and would leave the company on June 15. Nissan has struggled with anemic sales in the United States, its most important market after China. Jérémie Papin, the senior vice president for finance at Nissan North America, will replace Mr. Luis Valls, the company said.Nissan said the head of its North American operation, José Luis Valls, had resigned for “personal reasons” and would leave the company on June 15. Nissan has struggled with anemic sales in the United States, its most important market after China. Jérémie Papin, the senior vice president for finance at Nissan North America, will replace Mr. Luis Valls, the company said.
Leslie H. Wexner, the longtime chief executive officer and chairman of L Brands, stepped down from both roles on Thursday as expected, though he will retain a board seat. Mr. Wexner, 82, the longest serving chief executive of a company in the S&P 500, recently faced serious questions about his leadership because of issues with the company’s culture and his relationship with the disgraced financier Jeffrey Epstein, a convicted sex offender.Leslie H. Wexner, the longtime chief executive officer and chairman of L Brands, stepped down from both roles on Thursday as expected, though he will retain a board seat. Mr. Wexner, 82, the longest serving chief executive of a company in the S&P 500, recently faced serious questions about his leadership because of issues with the company’s culture and his relationship with the disgraced financier Jeffrey Epstein, a convicted sex offender.
J.C. Penney might file for bankruptcy as soon as Friday after skipping two interest payments on its debt in the past month, according to two people familiar with the matter. The company is in talks to secure about $450 million in debtor-in-possession financing, which would allow it to keep operating the business, according to the people, who spoke on condition of anonymity because discussions were confidential.J.C. Penney might file for bankruptcy as soon as Friday after skipping two interest payments on its debt in the past month, according to two people familiar with the matter. The company is in talks to secure about $450 million in debtor-in-possession financing, which would allow it to keep operating the business, according to the people, who spoke on condition of anonymity because discussions were confidential.
Sony reported a 57 percent drop in operating profit in the three months ending in March. The coronavirus has hit Sony’s electronics business hard, while giving a boost to some of its entertainment offerings, as people stuck at home seek to keep themselves busy.Sony reported a 57 percent drop in operating profit in the three months ending in March. The coronavirus has hit Sony’s electronics business hard, while giving a boost to some of its entertainment offerings, as people stuck at home seek to keep themselves busy.
Reporting was contributed by Patricia Cohen, Tiffany Hsu, Stanley Reed, Niraj Chokshi, Li Yuan, Ben Dooley, Carlos Tejada, Jeanna Smialek, Tara Siegel Bernard Jim Tankersely, Matt Phillips, Sapna Maheshwari, Michael J. de la Merced and Kevin Granville.Reporting was contributed by Patricia Cohen, Tiffany Hsu, Stanley Reed, Niraj Chokshi, Li Yuan, Ben Dooley, Carlos Tejada, Jeanna Smialek, Tara Siegel Bernard Jim Tankersely, Matt Phillips, Sapna Maheshwari, Michael J. de la Merced and Kevin Granville.