The U.S. has experienced about 20 weeks of overclaims hovering around 1 million Americans filing for unemployment. Roughly 57.4 million Americans have filed for unemployment since mid-March.
A “soft landing” is optimistic. The weekly unemployment numbers came out after the Paycheck Protection Program ended. The PPP was part of the multitrillion government stimulus plan that provided companies with forgivable loans under the condition that they’d retain their employees for a specified period ending Sept. 30.
Thousands of businesses that are dealing with life-threatening financial problems, due to the disruption wrought by Covid-19, will most likely not hire new people. It’s reasonable to believe, if market conditions do not improve, there will be an avalanche of downsizings when the PPP restriction stops and companies start letting go of workers to cut costs and save moneyForbes Jobless Claims: 57.4 Million Americans Have Sought Unemployment Benefits Since Mid-March—Over 1 Million People Filed Last Week