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U.S. Jobs Report Shows Clearest Data Yet on Economic Toll: Live Updates U.S. Jobs Report Shows Clearest Data Yet on Economic Toll: Live Updates
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Tesla has told employees it intended to restart its factory in Fremont, Calif., on Friday. But the electric car company’s plans do not comply with a local government order that has not yet cleared large manufacturers to resume operations.Tesla has told employees it intended to restart its factory in Fremont, Calif., on Friday. But the electric car company’s plans do not comply with a local government order that has not yet cleared large manufacturers to resume operations.
The company informed employees of the plan in company emails that were reviewed by The New York Times. The emails were sent after Gov. Gavin Newsom of California said manufacturing companies could resume operations even as other businesses were to stay closed because of the coronavirus pandemic. The governor also said that local governments could impose tougher restrictions than those that apply statewide.The company informed employees of the plan in company emails that were reviewed by The New York Times. The emails were sent after Gov. Gavin Newsom of California said manufacturing companies could resume operations even as other businesses were to stay closed because of the coronavirus pandemic. The governor also said that local governments could impose tougher restrictions than those that apply statewide.
A coalition of health officials from six counties in the San Francisco Bay Area and the City of Berkeley have chosen to maintain to stricter limits in their most recent order, issued on May 4.A coalition of health officials from six counties in the San Francisco Bay Area and the City of Berkeley have chosen to maintain to stricter limits in their most recent order, issued on May 4.
That order allowed construction, landscaping, agricultural and other outdoor businesses to resume operations, but restaurants, bars or other indoor businesses “that do not permit physical distancing or have high-touch equipment” must remain closed.That order allowed construction, landscaping, agricultural and other outdoor businesses to resume operations, but restaurants, bars or other indoor businesses “that do not permit physical distancing or have high-touch equipment” must remain closed.
“Tesla has been informed that they do not meet these criteria and must not reopen,” Neetu Balram, a spokeswoman for Alameda County, said in a statement.“Tesla has been informed that they do not meet these criteria and must not reopen,” Neetu Balram, a spokeswoman for Alameda County, said in a statement.
Tesla representatives did not respond to a request for comment.Tesla representatives did not respond to a request for comment.
The Labor Department said Friday that the economy shed more than 20.5 million jobs in April, sending the unemployment rate to 14.7 percent — devastation unseen since the Great Depression.The Labor Department said Friday that the economy shed more than 20.5 million jobs in April, sending the unemployment rate to 14.7 percent — devastation unseen since the Great Depression.
The report underscores the speed and depth of the labor market’s collapse as the coronavirus pandemic took a devastating toll. In February, the unemployment rate was 3.5 percent, a half-century low.The report underscores the speed and depth of the labor market’s collapse as the coronavirus pandemic took a devastating toll. In February, the unemployment rate was 3.5 percent, a half-century low.
The April job losses alone far exceed the 8.7 million in the last recession, when unemployment peaked at 10 percent in October 2009. The only comparable period came when the rate reached about 25 percent in 1933, before the government began publishing official statistics.The April job losses alone far exceed the 8.7 million in the last recession, when unemployment peaked at 10 percent in October 2009. The only comparable period came when the rate reached about 25 percent in 1933, before the government began publishing official statistics.
If anything, the report understates the damage. The government’s definition of unemployment typically requires people to be actively looking for work. And the unemployment rate does not reflect the millions still working who have had their hours slashed or their pay cut.If anything, the report understates the damage. The government’s definition of unemployment typically requires people to be actively looking for work. And the unemployment rate does not reflect the millions still working who have had their hours slashed or their pay cut.
The unemployment rate for black workers jumped to 16.7 percent, nearly three times its level in February — before coronavirus shutdowns took hold — and the highest since early 2010.The unemployment rate for black workers jumped to 16.7 percent, nearly three times its level in February — before coronavirus shutdowns took hold — and the highest since early 2010.
For Hispanic or Latino workers, the unemployment rate jumped to 18.9 percent, up from 6 percent in March and the highest on records going back to the 1970s. That compares with an overall unemployment rate of 14.7 percent for the nation, and a 14.2 percent jobless rate for white workers.For Hispanic or Latino workers, the unemployment rate jumped to 18.9 percent, up from 6 percent in March and the highest on records going back to the 1970s. That compares with an overall unemployment rate of 14.7 percent for the nation, and a 14.2 percent jobless rate for white workers.
The number is striking because employment gains among minorities, and black workers in particular, had been a bright spot in the record-long expansion that preceded the coronavirus lockdown and a major talking point for President Trump.The number is striking because employment gains among minorities, and black workers in particular, had been a bright spot in the record-long expansion that preceded the coronavirus lockdown and a major talking point for President Trump.
Women lost 11.9 million jobs in April, more than the 10.4 million shed by their male counterparts, as coronavirus shuttered service industries where they tend to be heavily employed.Women lost 11.9 million jobs in April, more than the 10.4 million shed by their male counterparts, as coronavirus shuttered service industries where they tend to be heavily employed.
Unemployment for women surged to 16.2 percent from 3.4 percent as recently as February, and men saw their jobless rate jump to 13.5 percent from 3.6 percent that month.Unemployment for women surged to 16.2 percent from 3.4 percent as recently as February, and men saw their jobless rate jump to 13.5 percent from 3.6 percent that month.
The gap is a sharp reversal from what happened in the 2007 recession, when men shed jobs rapidly as industries like construction fell off a cliff. But the pandemic is heavily hitting service sector employment.The gap is a sharp reversal from what happened in the 2007 recession, when men shed jobs rapidly as industries like construction fell off a cliff. But the pandemic is heavily hitting service sector employment.
As tens of millions of Americans lost their jobs in April, 78.3 percent of them classified their separation as a temporary layoff, while 11.1 percent said their situation was permanent.As tens of millions of Americans lost their jobs in April, 78.3 percent of them classified their separation as a temporary layoff, while 11.1 percent said their situation was permanent.
That is an unusually high share of people on temporary layoffs, and it could be good news for the economy because short-term job losses suggest that hiring may come back quickly when businesses reopen.That is an unusually high share of people on temporary layoffs, and it could be good news for the economy because short-term job losses suggest that hiring may come back quickly when businesses reopen.
But there’s an important caveat: Temporary layoffs can always become permanent later, if the economic situation worsens.But there’s an important caveat: Temporary layoffs can always become permanent later, if the economic situation worsens.
Nearly nine million workers in April reported that they were employed but absent from work for “other” reasons — meaning not because they were sick, on vacation or other typical reasons for absence. That’s about 7.5 million more people than in a typical April.Nearly nine million workers in April reported that they were employed but absent from work for “other” reasons — meaning not because they were sick, on vacation or other typical reasons for absence. That’s about 7.5 million more people than in a typical April.
The Labor Department on Friday said that many of these people probably should have been recorded as “unemployed” instead. And if they had been, “the overall unemployment rate would have been almost 5 percentage points higher than reported” — or close to 20 percent.The Labor Department on Friday said that many of these people probably should have been recorded as “unemployed” instead. And if they had been, “the overall unemployment rate would have been almost 5 percentage points higher than reported” — or close to 20 percent.
The issue highlights how standard economic measures are struggling to reflect the unusual nature of this crisis.The issue highlights how standard economic measures are struggling to reflect the unusual nature of this crisis.
Across dozens of industries, only one added a meaningful number of jobs in April: general merchandise stores, including warehouse clubs and supercenters. They increased their payrolls by 93,400 positions.Across dozens of industries, only one added a meaningful number of jobs in April: general merchandise stores, including warehouse clubs and supercenters. They increased their payrolls by 93,400 positions.
That makes sense given that Americans need to buy groceries and other at-home staples, and Walmart has said publicly that it is hiring on a large scale to meet demand.That makes sense given that Americans need to buy groceries and other at-home staples, and Walmart has said publicly that it is hiring on a large scale to meet demand.
Anyone still thinking that the pandemic’s economic effects are limited to people in restaurants, travel and similar service businesses is very much mistaken. Workers in almost every industry, including those that on the surface shouldn’t be affected by the pandemic at all, are at risk.Anyone still thinking that the pandemic’s economic effects are limited to people in restaurants, travel and similar service businesses is very much mistaken. Workers in almost every industry, including those that on the surface shouldn’t be affected by the pandemic at all, are at risk.
Apple said on Friday that it would reopen stores in four states next week, instituting temperature checks for customers and employees and limiting the number of people inside each store at any given time.Apple said on Friday that it would reopen stores in four states next week, instituting temperature checks for customers and employees and limiting the number of people inside each store at any given time.
The company will also provide face coverings for customers who want them.The company will also provide face coverings for customers who want them.
In March, Apple had closed more than 450 of its stores, or nearly every location outside of China, in response to the coronavirus outbreak. In recent weeks, it has begun to slowly reopen some stores, including in Australia, Austria and South Korea.In March, Apple had closed more than 450 of its stores, or nearly every location outside of China, in response to the coronavirus outbreak. In recent weeks, it has begun to slowly reopen some stores, including in Australia, Austria and South Korea.
Next week, the company will add stores in Alabama, Alaska, Idaho and South Carolina to that list, starting with its store in Boise on Monday. It has six stores in those states, but an Apple spokesman said not all would open next week.Next week, the company will add stores in Alabama, Alaska, Idaho and South Carolina to that list, starting with its store in Boise on Monday. It has six stores in those states, but an Apple spokesman said not all would open next week.
The European Union said on Friday that governments in the bloc would have to restrict dividends, share buybacks and bonus payments at companies that receive economic relief in the form of a stake sale or certain kinds of debt.The European Union said on Friday that governments in the bloc would have to restrict dividends, share buybacks and bonus payments at companies that receive economic relief in the form of a stake sale or certain kinds of debt.
“As the crisis evolves, many businesses will also need capital to stay afloat,” the E.U.’s competition commissioner, Margrethe Vestager, said in a statement. “If member states decide to step in, we will apply today’s rules to ensure that taxpayers are sufficiently remunerated and their support comes with strings attached.”“As the crisis evolves, many businesses will also need capital to stay afloat,” the E.U.’s competition commissioner, Margrethe Vestager, said in a statement. “If member states decide to step in, we will apply today’s rules to ensure that taxpayers are sufficiently remunerated and their support comes with strings attached.”
A government should only buy a stake in a business if there is no other option, the E.U. said, and any “aid must be limited to enabling the viability of the company.”A government should only buy a stake in a business if there is no other option, the E.U. said, and any “aid must be limited to enabling the viability of the company.”
The plan to allow stake sales came hours after Christine Lagarde, the president of the European Central Bank, said the European Union should deploy more financial firepower to help the worst-hit members.The plan to allow stake sales came hours after Christine Lagarde, the president of the European Central Bank, said the European Union should deploy more financial firepower to help the worst-hit members.
“If not all countries are cured from this crisis, the others will suffer — and not just in terms of health, but economically too,” Ms. Lagarde said at an event organized by the European University Institute.“If not all countries are cured from this crisis, the others will suffer — and not just in terms of health, but economically too,” Ms. Lagarde said at an event organized by the European University Institute.
Countries may need to issue as much as 1.5 trillion euros, or $1.6 trillion, in new debt to pay for corporate loan guarantees, unemployment subsidy programs and other measures to keep their economies afloat, Ms. Lagarde said. That is three times as much as European Union leaders have jointly committed so far.Countries may need to issue as much as 1.5 trillion euros, or $1.6 trillion, in new debt to pay for corporate loan guarantees, unemployment subsidy programs and other measures to keep their economies afloat, Ms. Lagarde said. That is three times as much as European Union leaders have jointly committed so far.
The Treasury Department said on Friday that nearly half of the “economic impact” payments being sent to Americans had been distributed in the first five weeks of the program.The Treasury Department said on Friday that nearly half of the “economic impact” payments being sent to Americans had been distributed in the first five weeks of the program.
According to the latest figures, the Internal Revenue Service, which is part of Treasury, has disbursed nearly 130 million payments worth more than $218 billion. The agency expects to disburse another 150 million payments.According to the latest figures, the Internal Revenue Service, which is part of Treasury, has disbursed nearly 130 million payments worth more than $218 billion. The agency expects to disburse another 150 million payments.
The $292 billion pot of stimulus money was created as part of the CARES Act that was passed by Congress in March. The payments for most Americans are for $1,200 per adult and $500 per child, although the amounts are smaller for people with higher incomes.The $292 billion pot of stimulus money was created as part of the CARES Act that was passed by Congress in March. The payments for most Americans are for $1,200 per adult and $500 per child, although the amounts are smaller for people with higher incomes.
Most of the payments have gone to the largest states, with Californians receiving more than 13 million payments and Texans receiving nearly 11 million payments.Most of the payments have gone to the largest states, with Californians receiving more than 13 million payments and Texans receiving nearly 11 million payments.
The Education Department said in late March that it would stop garnishing the paychecks of borrowers who had defaulted on their federal student loans, but some people are still having their wages seized, according to court filings in a lawsuit over the practice.The Education Department said in late March that it would stop garnishing the paychecks of borrowers who had defaulted on their federal student loans, but some people are still having their wages seized, according to court filings in a lawsuit over the practice.
Craigory Lee A. Jenkins works in sales at a Lowe’s store in Pinellas Park, Fla., and earns $17.58 an hour. She is behind on her loan payments, and in March, the federal government began garnishing her checks. It took $204 from her paycheck this week, leaving her with $987 in take-home pay.Craigory Lee A. Jenkins works in sales at a Lowe’s store in Pinellas Park, Fla., and earns $17.58 an hour. She is behind on her loan payments, and in March, the federal government began garnishing her checks. It took $204 from her paycheck this week, leaving her with $987 in take-home pay.
“I am living paycheck to paycheck and struggling to make ends meet,” Ms. Jenkins said in a declaration submitted on Thursday.“I am living paycheck to paycheck and struggling to make ends meet,” Ms. Jenkins said in a declaration submitted on Thursday.
Ms. Jenkins and other borrowers are part of a lawsuit against the department, filed in federal court in Washington in late April, that seeks to halt the garnishments.Ms. Jenkins and other borrowers are part of a lawsuit against the department, filed in federal court in Washington in late April, that seeks to halt the garnishments.
Angela Morabito, an Education Department spokeswoman, declined to comment on the litigation. The department has directed employers to stop garnishing wages, she said, and “is making every effort to make borrowers whole” if their wages have been taken.Angela Morabito, an Education Department spokeswoman, declined to comment on the litigation. The department has directed employers to stop garnishing wages, she said, and “is making every effort to make borrowers whole” if their wages have been taken.
Nearly two weeks after the Paycheck Protection Program began making its second round of loans, nearly 40 percent of the funds remain unclaimed — surprising lenders who thought the money would vanish fast.Nearly two weeks after the Paycheck Protection Program began making its second round of loans, nearly 40 percent of the funds remain unclaimed — surprising lenders who thought the money would vanish fast.
Just over $185 billion of the program’s $310 billion had been allocated as of Thursday evening, the Small Business Administration said in its latest report. Intended to help small companies keep their workers employed, the program offers a forgivable loan to cover eight weeks of payroll and certain other operating expenses, like rent.Just over $185 billion of the program’s $310 billion had been allocated as of Thursday evening, the Small Business Administration said in its latest report. Intended to help small companies keep their workers employed, the program offers a forgivable loan to cover eight weeks of payroll and certain other operating expenses, like rent.
But growing concern among business owners over the program’s complex and still-changing rules has damped demand. Some who took the cash are sitting on it. Those who do not spend the money on payroll will not have the loan forgiven, saddling them with a large debt during an economic collapse. For many owners, though, hiring back workers in the face of so much uncertainty does not make sense.But growing concern among business owners over the program’s complex and still-changing rules has damped demand. Some who took the cash are sitting on it. Those who do not spend the money on payroll will not have the loan forgiven, saddling them with a large debt during an economic collapse. For many owners, though, hiring back workers in the face of so much uncertainty does not make sense.
Carrie Morey owns Callie’s Hot Little Biscuit, a small group of restaurants in Atlanta, Charleston and Charlotte, N.C. She got a loan in the paycheck program’s second round, but is hoping for rule changes to make it more flexible. She would like to have a much longer period to bring back workers and still have her loan forgiven.Carrie Morey owns Callie’s Hot Little Biscuit, a small group of restaurants in Atlanta, Charleston and Charlotte, N.C. She got a loan in the paycheck program’s second round, but is hoping for rule changes to make it more flexible. She would like to have a much longer period to bring back workers and still have her loan forgiven.
“Even if tomorrow everything were fine and we were to go back to business as usual, it’s going to take months for us to get customers to come in the door,” Ms. Morey said Thursday at a virtual gathering of business owners.“Even if tomorrow everything were fine and we were to go back to business as usual, it’s going to take months for us to get customers to come in the door,” Ms. Morey said Thursday at a virtual gathering of business owners.
Stocks rose on Friday, following global markets higher after upbeat comments from U.S. and Chinese officials about recent trade talks between the two countries.Stocks rose on Friday, following global markets higher after upbeat comments from U.S. and Chinese officials about recent trade talks between the two countries.
The S&P 500 climbed more than 1 percent. European markets were higher after a broadly positive day in Asia.The S&P 500 climbed more than 1 percent. European markets were higher after a broadly positive day in Asia.
Investors were cheered by the prospects of countries further reopening their economies, despite worries that those efforts could lead to a rise in infections. They were also bolstered by announcements from the United States and China that appeared to back their Phase 1 trade deal, which would bring their two-year trade war to a temporary truce. The White House had openly questioned China’s commitment to the deal in recent days, hurting stocks.Investors were cheered by the prospects of countries further reopening their economies, despite worries that those efforts could lead to a rise in infections. They were also bolstered by announcements from the United States and China that appeared to back their Phase 1 trade deal, which would bring their two-year trade war to a temporary truce. The White House had openly questioned China’s commitment to the deal in recent days, hurting stocks.
The optimism was widespread. Prices for U.S. Treasury bonds, which generally rise in troubled times, were lower. Oil prices also rose.The optimism was widespread. Prices for U.S. Treasury bonds, which generally rise in troubled times, were lower. Oil prices also rose.
But more grim economic data was released on Friday. The report on April payrolls in the United States is showed a loss of more than 20.5 million jobs — a breathtaking drop — and a sharp jump in the unemployment rate. Corporate earnings reports, too, are reflecting the heavy toll of the pandemic. Siemens, the European industrial giant, said profit fell 64 percent in the first quarter.But more grim economic data was released on Friday. The report on April payrolls in the United States is showed a loss of more than 20.5 million jobs — a breathtaking drop — and a sharp jump in the unemployment rate. Corporate earnings reports, too, are reflecting the heavy toll of the pandemic. Siemens, the European industrial giant, said profit fell 64 percent in the first quarter.
The stock market has shown a remarkable indifference to the dire outlook for the economy since it began to rally on March 23. That was the day the Federal Reserve signaled that it stood ready to pump an unlimited amount of dollars into financial markets to keep key borrowing markets from malfunctioning.The stock market has shown a remarkable indifference to the dire outlook for the economy since it began to rally on March 23. That was the day the Federal Reserve signaled that it stood ready to pump an unlimited amount of dollars into financial markets to keep key borrowing markets from malfunctioning.
Bed Bath & Beyond announced plans for a phased-in approach to reopen approximately 20 stores by May 22, but the majority of stores would remain closed until at least May 30. The company plans to promote store safety with hand sanitizer and wipes, occupancy limits, social distancing and curbside pickup. Bed Bath & Beyond also owns Buybuy Baby and Harmon Face Values, which sell essential goods and have remained open during the pandemic.
The German airline Lufthansa said Friday it would resume flights next month to popular European holiday destinations like the Mediterranean islands of Mallorca and Crete, and Sylt in the North Sea. Starting June 1, Lufthansa will double the number of aircraft in service, to 160.The German airline Lufthansa said Friday it would resume flights next month to popular European holiday destinations like the Mediterranean islands of Mallorca and Crete, and Sylt in the North Sea. Starting June 1, Lufthansa will double the number of aircraft in service, to 160.
The electronics and engineering giant Siemens, a bellwether for the German economy, reported that first-quarter profit fell by more than half as new orders slumped. Siemens said that sales had slipped a modest 1 percent compared with the first quarter of 2019. But new orders fell 9 percent largely because of lower demand for passenger trains. Profit fell 64 percent.The electronics and engineering giant Siemens, a bellwether for the German economy, reported that first-quarter profit fell by more than half as new orders slumped. Siemens said that sales had slipped a modest 1 percent compared with the first quarter of 2019. But new orders fell 9 percent largely because of lower demand for passenger trains. Profit fell 64 percent.
Reporting and research was contributed by Nelson D. Schwartz, Ben Casselman, Jeanna Smialek, Jack Ewing, Niraj Chokshi, Alan Rappeport, Sapna Maheshwari, Stacy Cowley, Neal E. Boudette, Michael Crowley, Ken Vogel, Keith Bradsher, Liu Yi, Mohammed Hadi, Brooks Barnes, Liz Alderman, Carlos Tejada, Daniel Victor and Kevin Granville. Reporting and research was contributed by Gregory Schmidt, Mohammed Hadi, Jack Nicas, Nelson D. Schwartz, Ben Casselman, Jeanna Smialek, Jack Ewing, Niraj Chokshi, Alan Rappeport, Sapna Maheshwari, Stacy Cowley, Neal E. Boudette, Michael Crowley, Ken Vogel, Keith Bradsher, Liu Yi, Mohammed Hadi, Brooks Barnes, Liz Alderman, Carlos Tejada, Daniel Victor and Kevin Granville.