SAN FRANCISCO (Up News Info SF) – A day after Governor Gavin Newsom announced a sharp increase in Californians applying for unemployment, federal officials revealed Thursday that the staggering 3.3 million Americans had filed jobless claims the week. pass.
That number is more than four times the previous national record set in 1982 and showed the dramatic economic impact the coronavirus outbreak has had on the nation.
In a speech to the state on Wednesday, Newsom said that 1 million Californians had filed unemployment claims in less than two weeks, as the state has been under an established shelter, limiting activity to essential businesses.
"We have just passed the 1 million mark, in terms of the number of claims, only since March 13," Newsom said.
The governor praised the relief bill that was passed in the Senate on Wednesday night. California provides up to $ 450 a week for unemployment insurance, Newsom said, and the Senate bill would add $ 600 a week for up to four months.
"This bill will be very useful and very timely," Newsom said.
California and its cities will receive $ 10 billion from a block grant portion of the Senate Aid Bill, not including benefits for workers and individuals.
Authorities said the pace of layoffs is likely to accelerate as the US economy sinks into a recession. Revenue has plummeted in restaurants, hotels, movie theaters, gyms, and airlines across California and the country.
Auto sales have plummeted and automakers have factories nearby. Most of these employers face loan payments and other fixed costs, so they are cutting jobs to save money.
Newsom also praised California lawmakers on Wednesday for their leadership in negotiating the national aid package, pointing to Speaker of the House of Representatives Nancy Pelosi before summarizing a waiver for mortgage and foreclosure payments that They had negotiated with the banks for the state's homeowners.
"Over the course of the past few weeks, we have sat down with large and small banks, large and small credit unions throughout the state of California," Newsom said. "We have been in contact with CEOs of national banks across the United States."
Newsom said the deal would include a 90-day exemption for mortgage and credit payments by people affected by COVID-19 from the country's largest banks, including Citibank, JP Morgan Chase and US Bank. Bank of America also agreed to a fee waiver, but only for 30 days, Newsom said.
Banks have also agreed to a moratorium on foreclosures, Newsom said.
"About 200 state banks and credit unions have committed to the state of California to provide tolerance on foreclosures and mortgage payments over the next 90 days," Newsom announced.
As job losses increase in California and the nation, some economists say the nation's unemployment rate could approach 13% in May. In comparison, the highest unemployment rate during the Great Recession, which ended in 2009, was 10%.
Economic decline has been rapid. Recently, in February, the unemployment rate was at a 50-year low of 3.5%. And the economy grew steadily although modestly. However, for the April to June quarter of the year, some economists think the economy will shrink at its annual rate stronger than ever, a contraction that could reach 30%.
© Copyright 2020 Up News Info Broadcasting Inc. All rights reserved. Associated Press contributed to this report.