Never have we sen such a surge in unemployment before

Unemployment Surges in Canada, US Will Probably Hold China Accountable for Coronavirus

Posted Friday, May 8, 2020 by
Skerdian Meta • 2 min read

Employment has been taken a big hit during the coronavirus lock-down. Services have all but closed everywhere in Europe and North America and the largest economies of most of these countries are services industries, so it makes sense that employment has turned quite negative all over the West, with the unemployment rate surging in March and April.

In Canada we saw more than 1 million people claim for unemployment benefits in March, which is the equivalent of 10 million people claiming for benefits in the US. Now claims have jumped to nearly 2 million, but at least that’s half the expectations.

Canadian Employment Report, April 2020

  • April employment change -1,993.8K vs -4,000K expected
  • Worst report ever
  • February stood at -1,010.7K
  • Unemployment rate 13.0% vs 18.1% expected
  • Prior was 7.8%
  • Full time -1,472K vs -474K prior
  • Part time -521K vs -536K prior
  • Participation rate 59.8% vs 61.4% exp
  • Prior participation rate 63.5%
  • 97% of those newly unemployed expected to return to former job once shutdown relaxed

The last line, saying that 97% of those newly unemployed expected to return to former job once shutdown relaxed. This is optimistic, so let’s hope this is true when the lock-down ends. Meanwhile, Hasset and Larry Kudlow were speaking on Bloomberg, suggesting that probably the US will hold China accountable for the virus.

Kudlow Speaking now on Bloomberg TV

  • Trump administration making contingency plans for 2nd wave of coronavirus, possible future shutdowns
  • China will be held accountable 1 final studies on coronavirus are in, trade relationship appears to be on track Trump had constructive meetings with Mnuchin, Lighthizer, Liu he
  • May have gone too far in off-shoring US industry
  • Trump is keen on on-shoring. Many ways to do it
  • Congressional negotiations will come after bit of a pause
  • Pres. Trump to meet with congressional Republicans today
  • Three quarters of today’s numbers are temporary layoffs
  • People expect to go back to work

White House Hassett Speaking:

  • unemployment numbers are heartbreaking
  • almost all unemployed expect to be re-hired by employer
  • next report could show 25% unemployment
  • payroll tax cut would only be a part of next package
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