Fewer than half of working Americans will have a paycheck in May [View all]

[Demovictory9]

Fewer than half of working Americans will have a paycheck in May as devastating coronavirus layoffs persist, economist says

https://www.businessinsider.com/layoffs-coronavirus-less-than-half-american-workers-paycheck-wage-may-2020-4

The millions of Americans who have lost their jobs in recent weeks due to the coronavirus pandemic will have a devastating effects on the economy going forward as workers are left without pay.

Losses in April alone could push the unemployment rate to 16%, according to James Knightley, chief international economist at ING. If another 10 million Americans file jobless claims in May, that would push the unemployment rate to 22%, he said.

"Thankfully this is below the 24.9% peak experienced in 1933, but we have to remember that one third of Americans aged 18-65 are not classified as employed or unemployed – they are students, early retirement, homemakers, carers or sick," Knightly wrote in a Thursday note.

"This leads us to yet another sobering statistic – that less than half of working age Americans will be earning a wage next month," he said.