o14 Million Americans Have Been Laid Off So Far Due To COVID-19 | Zero Hedge
Gldman is not alone, BofA warns that jobs will be lost but even more hours will be cut.
We expect a total of approximately 3.5 million jobs will be lost with the biggest hit in 2Q of 1 million per month. This will send the unemployment rate higher, nearly doubling to 6.3%. The industries to be hit the hardest are leisure & hospitality and retail. These sectors have a high share of hourly workers – about 80% for the former and 70% for the latter. And these workers struggle to work from home. This means they are vulnerable to a reduction in hours worked and likely outright job cuts.
We look for initial jobless claims to spike to 3 million in the week ending March 21st, reflecting the mass layoffs/furloughs across the country due to the COVID-19 outbreak.
On the spending side, the numbers are even more devastating, as Goldman shows: