The US Bureau of Labor Statistics put out its much anticipated labor statistics this morning, reporting an overall drop in employment of 20.5 million, with the unemployment rate soaring to 14.7%, the highest figures ever recorded by the survey. Unsurprisingly, the hardest hit sectors included leisure and hospitality.
Over the month of April total unemployment within the US increased by 10.3 percentage points to that of 14.7%, with rates among specific demographics varying. The least hit demographic was that of adult men at 13.0%, compared to teenagers at 31.9%. Of those that were reported as being unemployed, 18.1 million classified it as being “temporary” when surveyed, while permanent job losers came in at 2.0 million.
In terms of labor force participation, the rate decreased by 2.5% over the month to 60.2%, which is the second lowest figure during the history of the series, behind only January 1973. Total employment during the month fell by 22.4 million to that of 133.4 million people. The employment to population ratio fell by 8.7%, the largest drop ever recorded, to that of 51.3%.
Despite the largest drop in employment and the highest unemployment rate ever recorded, the broader market is currently rallying on the news. The rally is largely due to conensus estimates of unemployment figures being in the neighborhood of 15% to 16%.
Information for this briefing was found via the Department of Labor, Yahoo Finance, NBC Today, and The Washington Times. The author has no securities or affiliations with any of the mentioned securities. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.