WASHINGTON — More than 6.6 million Americans applied for unemployment benefits last week, far exceeding a record high set just a week prior, a sign that layoffs are accelerating in the midst of the coronavirus.
Initial claims for unemployment insurance in Colorado followed suit. The 60,784 claims filed last week more than tripled the previous one-week record of 19,774, a mark set during the week that ended March 21, according to numbers shared by the U.S. Department of Labor. Thousands more have filed applications for benefits but were not approved for initial claims.
The two-week total of 80,558 claims more than doubles Colorado’s unemployment rate from February. At the end of that month, roughly 80,300 people in the state had been approved for benefits, according to the U.S. Bureau of Labor Statistics, setting the statewide unemployment rate of 2.5%.
With layoff notices pouring in and adjustments made to state systems to allow more people to file for unemployment online or by phone, the state is moving into territory it hasn’t seen in years. The last time Colorado’s unemployment rate was over 5% was in 2014, federal data shows.
The job cuts are mounting against the backdrop of economies in the United States and abroad that have almost certainly sunk into a severe recession as businesses close across the world.
The national figure for last week is much higher than the previous record of 3.3 million reported for the previous week. The surging layoffs have led many economists to envision as many as 20 million lost jobs across the country by the end of April. The unemployment rate could spike to as high as 15% this month, above the previous record of 10.8% set during a deep recession in 1982.
Many employers are slashing their payrolls to try to stay afloat because their revenue has collapsed, especially at restaurants, hotels, gyms, movie theaters and other venues that depend on face-to-face interaction. Auto sales have sunk, and factories have closed.
Stay-at-home orders, imposed by most U.S. states, have intensified pressure on businesses, most of which face rent, loans and other bills that must be paid.
Denver Post staff writer Joe Rubino contributed to this report.
