68°F
weather icon Clear

US jobless claims hit more than 3M in one week, Nevada claims spike

Updated March 26, 2020 - 6:14 pm

WASHINGTON — Nearly 3.3 million Americans, including more than 93,000 in Nevada, applied for unemployment benefits last week amid a widespread economic shutdown caused by the coronavirus.

The national number was almost five times the previous record of 695,000 set in October 1982.

The surge in weekly applications was a stunning reflection of the damage the viral outbreak is inflicting on the economy. Filings for unemployment aid generally reflect the pace of layoffs.

Layoffs are sure to accelerate as the U.S. economy sinks into a recession. Revenue has collapsed at restaurants, hotels, movie theaters, gyms and airlines. Auto sales are plummeting, and car makers have closed factories. Most such employers face loan payments and other fixed costs, so they’re cutting jobs to save money.

In Nevada, Gov. Steve Sisolak ordered all casinos to close on March 17. Three days later, he ordered most nonessential businesses do the same.

These shutdowns have led to a number of layoffs, especially in the tourism industry, the largest source of employment in Nevada, and Thursday’s numbers reflect that. The 93,000 people filing for unemployment benefits in Nevada last week was more than 14 times the number of claimants the prior week when 6,356 people filed claims.



Nationally, the Labor Department said 3.283 million people applied for unemployment benefits last week, up from 282,000 during the previous week. However, many people who have lost jobs in recent weeks in Nevada and elsewhere have been unable to file for unemployment aid because state websites and phone systems have been overwhelmed by a crush of applicants.

That logjam suggests that Thursday’s report actually understates the magnitude of job cuts last week. So does the fact that workers who are not on company payrolls — gig workers, free-lancers, the self-employed — aren’t currently eligible for unemployment benefits even though in many cases they’re no longer able to earn money.

Asked about the record-high applications for jobless aid, President Donald Trump said the figures were “fully expected.”

“It’s a lot of jobs, but I think we’ll come back very strong,” he said.

As job losses mount, some economists say the nation’s unemployment rate could approach 13 percent by May. By comparison, the highest jobless rate during the Great Recession, which ended in 2009, was 10 percent.

“What seemed impossible just two weeks ago is now reality,” said Nancy Vanden Houten, an economist at Oxford Economics, a consulting firm. “The US economy will experience the largest economic contraction on record with the most severe surge in unemployment ever.”

A Wednesday report from the Economic Policy Institute found the national economy could lose 14 million jobs by summer 2020. Nevada is the state hit hardest in the projection, with 14.2 percent of its private sector employees losing their jobs. The loss would largely be due to the state’s reliance on the leisure, hospitality and retail sectors, according to the report.

The economic deterioration has been swift. As recently as February, the unemployment rate was at a 50-year low of 3.5 percent. Nevada’s unemployment rate hit a record low in January at 3.6 percent.

With layoffs surging, a significant expansion of unemployment benefits was included in an economic relief bill nearing final approval in Congress. One provision in the bill would provide an extra $600 a week on top of the unemployment aid that states provide. Another provision would supply 13 additional weeks of benefits beyond the six months of jobless aid that most states offer. The new legislation would also extend unemployment benefits, for the first time, to gig workers and others who are not on company payrolls.

Review-Journal staff writer Bailey Schulz contributed to this report.

Don't miss the big stories. Like us on Facebook.
Business Videos
Allegiant burning over $2M per day, many workers on leave with half pay - VIDEO
Allegiant Air’s parent is burning through at least $2 million in cash per day and hundreds of workers are taking two-month leave at half pay as the carrier grapples with the fallout from the coronavirus pandemic. (James Schaeffer / Las Vegas Review-Journal)
Small business owners talk about shutdown impact
Small business owners talk about shutdown impact. (Bizuayehu Tesfaye/Las Vegas Review-Journal) @bizutesfaye
Top stories Friday April 3, 2020
Rj Business reporters Bailey Schulz, Subrina Hudson and Eli Segall talk about the top trending stories at the Review-Journal
Caesars furloughing about 90% of US workers
The furloughs come amid the COVID-19 pandemic, which has prompted all U.S. commercial casinos to temporarily shut their doors.
Amazon blocks sale of N95 masks to public - VIDEO
Amazon established a new section of its website where U.S.-accredited hospitals or state or federal agencies can apply for supplies. N95 masks, surgical masks, facial shields, surgical gowns, surgical gloves and large-volume sanitizers are among the restricted items. (Las Vegas Review-Journal)
Cars line up for over 4 miles for food
Cars were lined up along Sahara Avenue from Palace Station to South Rainbow Boulevard for food distribution sponsored by Three Square and Central Church in Henderson.
US weekly jobless claims jump to 6.6 million - VIDEO
The U.S. Labor Department reported 6.6 million people filed for unemployment insurance in the past week. A reported 10 million people have filed over the past two weeks. (Las Vegas Review-Journal)
When will self-employed get unemployment money in Nevada? - VIDEO
President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security Act into law March 27. It allows states to expand unemployment insurance benefits, including to independent contractors, self-employed and gig workers. (Las Vegas Review-Journal)
Free Business Updates
For more information head to: https://www.reviewjournal.com/vegas-business-updates/
Walmart’s new safety measures at stores: Checking temperatures - VIDEO
In an effort to intensify safety measures in their stores, Walmart and Sam’s Club will check the temperatures of all employees as they arrive for work. (Kevin Cannon / Las Vegas Review-Journal)
Macy’s to furlough majority of 130,000 employees amid coronavirus closures - VIDEO
On March 30, Macy’s Inc. announced their decision to furlough a majority of their employees and instead move to the “absolute minimum workforce needed.” (Las Vegas Review-Journal
An empty Las Vegas Strip from the air - Drone Video
For the first time in forever, the famed Las Vegas Strip is closed for business amid the coronavirus pandemic. (Michael Quine/Las Vegas Review-Journal)
Nevada construction continues as coronavirus spreads
When Gov. Steve Sisolak ordered Nevada businesses closed, he let construction workers stay on the job, deeming homebuilding and other construction “essential” lines of work.
US weekly jobless claims soar to record-breaking 3.28M - VIDEO
The U.S. Department of Labor released the shattering numbers on Thursday. Jobless claims had been as low as 282,000 the previous week. The 3.28 million jobless claims for last week is more than double the 1.5 million new claims that analysts were expecting. (Las Vegas Review-Journal)
Worker at Allegiant Stadium tests positive for COVID-19
Construction of Allegiant Stadium is unlikely to affected by the coronavirus outbreak that is having an impact on just about every industry across the Las Vegas Valley. (Michael Quine/Las Vegas Review-Journal)
Casino companies burning through millions daily
RJ reporter Bailey Schulz talks about how much Las Vegas Casino companies are losing and how the Emergency bill could help if they run out of money or need help recouping what was lost.
Albertsons, Walmart, Amazon increase pay amid coronavirus impact - VIDEO
Grocery stores and other retailers have raised employee pay as they work to meet customer demand during the coronavirus pandemic. (James Schaeffer / Las Vegas Review-Journal)
Las Vegas police tells nonessential businesses to respect the shutdown - VIDEO
The Las Vegas Metropolitan Police Department reminds businesses in Clark County that all nonessential businesses are to be shut down as mandated by Nevada Gov. Steve Sisolak, due to the coronavirus crises. (Las Vegas Metropolitan Police Department)
Amazon Prime delays are now as long as a month - VIDEO
As of Sunday, many nonessential items ordered with Prime delivery are showing an April 21 delivery date. (Las Vegas Review-Journal)
Fed announces unprecedented actions to stabilize markets - VIDEO
The Federal Reserve announced several new measures on Monday. Among the announced programs is a further commitment of $300 billion "supporting the flow of credit" for Main Street businesses. (Las Vegas Review-Journal)
Lee’s Discount Liquor stores close on Sunday - VIDEO
Lee’s Discount Liquor stores across the Las Vegas Valley closed at 3 p.m. Sunday, March 22, the company announced on Twitter. (Las Vegas Review-Journal)
Local Businesses Message To Customers After Closing - Video
Local movie theaters and stores leave signs on their doors for customers as businesses close after being ordered to shut down.
Valley businesses react to mandatory order to shut down - VIDEO
All non-essential businesses in the Las Vegas Valley have to shut down. We spoke with store owners who would remain open for the benefit of the community and others who were still confused as to why they had to close. (James Schaeffer / Las Vegas Review-Journal)
Nevada casino closures impact 206K workers, AGA finds - VIDEO
About 206,000 direct casino employees in Nevada are without work after Gov. Steve Sisolak’s Tuesday mandate, according to the American Gaming Association. (James Schaeffer / Las Vegas Review-Journal)
More Las Vegas Valley grocery stores offer early hours for seniors - VIDEO
A growing list of Las Vegas Valley retailers are offering special shopping hours for seniors in light of the COVID-19 pandemic. (James Schaeffer / Las Vegas Review-Journal)
Nevada casinos closing for 30 days following state order - VIDEO
Gov. Steve Sisolak’s unprecedented order on nonessential Nevada businesses will shut down 440 licensed casinos. (James Schaeffer / Las Vegas Review-Journal)
Wynn CEO and Dr. Rebecca Katz go over coronavirus - Video
The Wynn CEO Matt Maddox and Dr. Rebecca Katz give a warning about the coronavirus in Las Vegas and around the world.
The Bellagio casino floor cleared as guests get ready to leave hotel - VIDEO
The Bellagio casino floor cleared as guests get ready to leave hotel (James Schaeffer / Las Vegas Review-Journal)
Tourists upset with MGM Resorts' lack of closure notice - VIDEO
Tourists like David and Emma Walker, who are visiting from Scotland, found out about MGM Resorts' property closures through Google, instead of the Luxor where they are currently staying. The Walkers are upset with how MGM has handled the situation by not making their customers aware of the closures first. (Cassie Soto/Las Vegas Review-Journal)
All Las Vegas MGM casinos, hotels to temporarily close - VIDEO
MGM Resorts International announced Sunday it is temporarily suspending operations at all Las Vegas properties “until further notice” effective Tuesday. (James Schaeffer / Las Vegas Review-Journal)
THE LATEST
S&P 500 rises 2% amid unsettled world trading

Trading remained unsettled around the world, with Asian stock markets mixed and European indexes down. A day before, a big gain for the S&P 500 suddenly vanished.