COVID-19’s Impact on Employment

Chart COVID 19s Impact on Employment March 2020

The Allegiant Investment Team has been warning about new economic reports looking very ugly once the data includes the impact of COVID-19. The March 26th initial unemployment claims report gave us a first look at just how ugly it could be. A record 3.3 million Americans filed for unemployment claims during the week, leaps and bounds higher than the previous weekly record of 695,000 in 1982. As if this wasn’t ugly enough, the April 2nd weekly report showed another 6.6 million Americans filing for benefits.

Yes, this data is scary and will probably get worse before it gets better. But help is on the way from both fiscal and monetary stimulus. The government’s intervention is designed to support the American worker and provides businesses with tools necessary to retain employees while the economy is on pause.