26/4/21: What Low Corporate Insolvencies Figures Aren't Telling Us

 

One of the key features of the Covid19 pandemic to-date has been a relatively low level of corporate insolvencies. In fact, if anything, we are witnessing virtually dissipation of the insolvencies proceedings in the advanced economies, and a simultaneous investment boom in the IPOs markets. 

The problem, of course, is that official statistics - in this case - lie. And they lie to the tune of at least 50 percent. Consider two charts:

And

The chart from the IMF is pretty scary. 18 percent of companies are expected to experience liquidity-related financial distress and 16 percent are expected to experience insolvency risk. The data covers Europe and Asia-Pacific. Which omits a wide range of economies, including those with more heavily leveraged corporate sectors, and cheaper insolvency procedures e.g. the U.S. The estimates also assume that companies that run into financial distress in 2020 will exit the markets in 2020-2021. In other words, the 16 percentage insolvency risk estimate is not covering firms that run into liquidity problems in 2021. Presumably, they will go to the wall in 2022. 

The second chart puts into perspective the IPO investment boom. Vast majority of IPOs in 2020-2021 have been SPACs (aka, vehicles for swapping ownership of prior investments, as opposed to generating new investments). The remainder of IPOs include DPOs (Direct Public Offerings, e.g. Coinbase) which (1) do not raise any new investment capital and (2) swap founders and insiders equity out and retail investors' equity in. 

The data above isn't giving me a lot of hope, to be honest of a genuine investment boom. 

We are living through the period of fully financialized economy: the U.S. government monetary and fiscal injections in 2020 totaled some $12.3 trillion. That is more than 1/2 of the entire annual GDP. Since then, we've added another $2.2 trillion. Much of these money went either directly (monetary policy) or indirectly (Robinhooders' effect) into the Wall Street and the Crypto Alley. In other words, little of it went to sustain real investment in productive capital. Fewer dollars went to sustain skills upgrading or new development. Less still went to support basic or fundamental research. 

In this environment, it is hard to see how global recovery can support higher productivity growth to bring us back to pre-pandemic growth path. What the recovery will support is and accelerated transfer of wealth:

• From lower income households that saved - so far  - their stimulus cash, and are now eager to throw it at pandemic-deferred consumption; 
• To Wall Street (via corporate earnings and inflation) and the State (via inflation-linked taxes).

In the short run, there will be headlines screaming 'recovery boom'. In the long run, there will be more structural unemployment, less jobs creation and greater financial polarization in the society. Low - to-date - corporate insolvencies figures and booming financial markets are masking all of this in the fog of the pandemic-induced confusion. 

14/4/21: The share of those in unemployment > 27 weeks is rising

 

One way to look at the state of the real (as opposed to financialized and corporate-value focused) economy is to look at unemployment. And one of the strongest indicators of longer term changes in the structure of the real economy is the fate of the longer term unemployed. Here is an interesting snapshot of data: the percentage of those unemployed for 27 week or longer in the total pool of the unemployed. The higher the number, the more structural is the unemployment problem. 

If the above is not clear enough, here is the same data expressed in the form of the range for each 12 months period (rolling) between maximum share of the longer term unemployed in the overall pool of unemployment and the minimum share:

All of the above suggests we are in deep trouble. And this trouble has been persistent since the Great Recession: we are witnessing a dramatic increase in the duration of unemployment spells. Part of this is due to the impact of Covid19 pandemic concentrated in specific sectors. Part of this is down to the generosity of unemployment benefits supplements and direct subsidies during the pandemic. Part of it is also down to the longer term changes in the U.S. labor markets and changes in households' composition and investment/consumption patterns.

Irrespective of the causes, the problem is obvious: the longer the person remains unemployed, the sharper is the depreciation of skills and their employability. If this (post-2008) experience is the 'new normal', America is developing a massive class of disillusioned and human capital poor workers. 

25/720: Updated: America's Scariest Charts: Unemployment Claims

Updating my Scariest Charts for the latest data, through thee week of July 18, 2020:

First, a summary table and chart for changes in the Initial Unemployment Claims:

Next: Continued Unemployment Claims through the week of July 11, 2020:

Key takeaways this week:

Continued unemployment claims changes:

• Latest count at 16,197,000, down from 17,304,000 a week ago - a decline driven by both, re-gained jobs and exits from unemployment benefits;
• Latest week w/w decline is faster than in any of the prior weeks of the current recession;
• Latest counts are 14,495,000 above the levels recorded in the first week of the current recession and are 14,548,000 above pre-recession trough;
• At last week's rate of decline, we have 13 weeks of unemployment claims to work through before recovering to pre-recession levels; based on the last 4 weeks average - 19 weeks.

New unemployment claims changes:

• Latest new unemployment claims filed figures are the lowest in the current recession cycle, but materially close to those recorded in the week of July 4, 2020;
• Nonetheless, we are now in 18 weeks of continued new unemployment claims filings in excess of 1 million per week.

Longer term view:

• Discontinuation of emergency $600/week unemployment support payment or curtailing of the benefit is likely to push both of the above series down in the short run in mid- to late-August, with a knock-on longer term effect of increasing longer term unemployment claims in September and onward. 

16/720: Updated: America's Scariest Charts: Unemployment Claims

New data for the week prior on continued and new unemployment claims continues to support a view of a relatively slow and slowing-down recovery in the U.S. labour markets.

Continued unemployment claims:

Continued unemployment claims in the week of July 4 amounted to 17,338,000 down 422,000 on prior week. A week before, the rate of decline was 1,000,000, and in 4 weeks prior to the the week of July 4, 2020, average weekly rate of decline was 711,500. Current 4 weeks average rate of decline is 737,750 driven by two weeks of > 1 million declines. The good news is that we now have 8 consecutive weeks of drops in continued unemployment claims. The bad news is that we do not know how much of the decline from the COVID19 pandemic peak is down to benefits expirations, or due to benefits cancelations due to some income being earned, with restored income being below pre-COVID19 levels. In other words, we have no clue as to whether jobs being restored are of comparable quality to jobs lost.

Next, Initial Unemployment Claims: these remain troubling too. In the week of July 11, 2020, there were 1,503,892 new initial unemployment claims filed, the highest number in 5 weeks.

As the table above highlights, we now have more than 17 weeks of new unemployment claims filings in excess of 1 million. Note: new unemployment claims filings can reflect many factors, including:

1. A person becoming newly unemployed;
2. A person who was unemployed and temporarily left unemployment insurance coverage due to receipt of irregular earnings;
3. A person who was unemployed, and run out of benefits coverage, taking a temporary job, but re-listing as an unemployed at that job expiration; 
4. A person who was unemployed before but did not secure past unemployment benefits; and
5. A person who was unemployed but was denied prior benefits due to various reasons.

Here is the history of the Initial Unemployment Claims, smoothed out to a 3mo moving sum:

An updated employment outlook for July 2020:

10/7/20: America's Scariest Charts Updated

Updating my series of 'America's Scariest Charts' for the latest data releases this week.

First: continued unemployment claims for data through the week of June 27th.

Continued unemployment claims fell from 18,760,000 in the week of June 20 to 18,062,000 in the week of June 27. Continued claims are now down 6,850,000 from their pandemic-period peak, which implies a decline of 978,571 per week since the peak. Based on the last two weeks' average weekly decline, it will take around 28 weeks to return continued unemployment claims to the pre-COVID19 levels.

Now, putting current crisis into historical perspective, the following chart uses log scale to show COVID19 recession experience in relation to all past recessions:

Next, new unemployment claims for the week of July 4, 2020. New claims in that week stood at 1,399,699, down slightly on the new claims in the eek prior at 1,431,343. Table below provides a summary:

Updated non-farm payrolls forecast for July 2020, based on June data for payrolls and the first data for July on changes in unemployment claims:

Average duration of unemployment is still completely swamped by the force and speed of the COVID19 onset, but is rising toward recession-consistent above-average territory:

3/7/20: Labor Market COVID19ed

I have been running a regular update on my 'America's Scariest Charts' covering labor markets developments (see most recent one here: https://trueeconomics.blogspot.com/2020/07/2720-americas-scariest-charts-updated.html). These charts rely heavily on two data sets: Non-Farm Payrolls data (monthly frequency), and initial unemployment claims (weekly frequency). I ignored for now two other data series:

1. Average duration of unemployment: this is, of course, rising, but from low levels, as the COVID19 crisis is still relatively young; and
2. Continued unemployment insurance claims: these data have been also proximate to the initial unemployment claims through the period of February-May.

Now, with two months of some jobs recovery, it is worth looking at (2) above. So here they are: continued unemployment claims charts:

Let us start with history:

There is no scaling in the above chart, just the numbers of people claiming unemployment insurance on continued basis. Which is telling: in recessions, these rise; in recoveries they fall. You can see that the lowest unemployment claims tend to happen some months before the onset of the subsequent recession. And recoveries take long. Of course, in the 1970s, there were fewer people in the labour force and, therefore, the absolute numbers of the unemployed were also lower.

Which means, it is worth rescaling each episode of rising and falling unemployment claims to the pre-recession levels ('norm') and to the recession peaks, taking into the account how long does it take unemployment claims accumulated during the recession to drop back to the levels of pre-recession claims.

So, methodology. I define 'normal' unemployment claims level as being the lowest level attained in the 12 weeks preceding each recession. This is set as an index of 100 for every recession. We look at the period of 6 weeks prior to the onset of the recession to identify the starting level of recession in terms of unemployment levels (these are weeks -6 through 1 on the X-axis). We then look at subsequent weeks (non-negative values on the X-axis) and plot index of unemployment claims (current unemployment claims normalized to the 'normal' level) through the recession and into the recovery, mapping these until one of the two events occurs:

1. Either the index returns back to 100 - meaning unemployment claims finally are restored to the level of the pre-recession levels or the 'normal'; or
2. In cases where this does not happen, until the onset of the next recession.

First, let us do this for all recessions since 1967 (when the data starts) through the end of 2019 - ignoring for now the COVID19 period.

Lots of interesting stuff in the above.

• 2008-2009 Great Recession was long - longer than any other recession - in terms of labor markets recovery to 'normal' levels of unemployment claims. It was also sharp - second sharpest on record - in terms of the mass of unemployment claims at the peak of the recession. 
• Legacy of the 1990-1991 recession was also painfully long, but shallower on the impact side (peak levels of unemployment claims). 
• Epic 1973-1975 recession was horrific: it had a long lasting impact on unemployment claims and, in fact, it never got the point of returning unemployment claims levels back to the pre-recession 'normal'. 
• We normally think of the 2001 recession as being 'technical' - caused just by the gyrations in the stock markets, aka the dot.com bubble burst. But in reality it too was pretty long in terms of its impact on the unemployed and it was pretty sharp as well.

And so on... but now, time to bring in the COVID19 pandemic. Let us start by just plotting it with the rest of the data. Boom!

The COVID19 pandemic made so many people claim unemployment insurance - on continued basis, not just one-off first time claims that anyone can file - that you can no longer meaningfully consider the rest of the recessions in comparison. In data analysis, we say that COVID19 pandemic is an influential outlier - it distorts our analysis of all other recessions. In this case, it is useful to use logarithmic scale to visualize the data. So here it is:

 

Even with log-transform, as above, the COVID19 crisis is off-the charts! No one has ever seen anything like this. Which we know.

The recovery from the pandemic has been sharp as well (steeper slope than in other recessions), but both charts above highlight the fact that whilst the U.S. economy is restoring some jobs during May-June re-opening period, the process of restoring these jobs is slow. Unlike what you hear from the White House and the Republican Party and its media, we are not in a 'tremendous recovery' and there is no 'roaring growth'. There is a mountain of pain that is being chipped away. At a current rate of 'chipping away', it can take the jobs markets some 10 months to come back to the pre-COVID19 'normal'. But that assumes that there will be no permanent or long-term jobs losses from the pandemic and the aftermath of the pandemic. It also assumes that the second wave of COVID19 infections that the U.S. is currently experiencing is not going to lead to such losses of jobs, and will not result in return to April-May levels of restrictions, and will not trigger a third wave of pandemic in Autumn. All three 'ands' must hold to get to that 10 months recovery. 

Stay tuned, I will be updating this chart as we go.

2/7/20: America's Scariest Charts Updated

Some updates from the US Labour Markets to our America's Scariest Charts series today.

First, headline official Non-Farm Payrolls data for the month of June 2020 is out today. Here is the visual:

Total Non-Farm Payrolls dropped during the COVID19 pandemic to the crisis-period low of 130,303,000 in April 2020. This marks a drop of 22,160,000 on pre-crisis high - a decline of 14.53%, the sharpest drop on record for any recession. Since then, the payrolls improved in May and again in June. Payrolls rose 2,699,000 in May and by 4,800,000 in June, prompting the White House (and the army of its trolls) to herald an 'unprecedented' 'tremendous' recovery. However:

• Despite these gains, current employment levels remain 14,661,000 below pre-COVID19 highs.  
• Relative to the pre-COVID19 trend, current payrolls are 15,398,000 below where they would have been were the pre-crisis trends to remain place. 

Hardly 'tremendous' success so far.

Summary of comparatives of the current recession to prior recessions:

Now, next in the set of our America's Scariest Charts: initial unemployment claims 9also released today). The table above already shows the latest print for these series - for the week ending June 27, 2020, at 1,445,481 new claims filed. This was virtually unchanged on the revised final estimate for the week ending June 20, 2020 that came in at 1,460,056. New claims have basically stabilized from the week of May 30th through latest. 

The six-months moving sum of all initial unemployment claims filings is now at a massive 47.477,907. This number, of course, are reflective of claims filed. And it does not reflect expired claims or people moving from unemployment to employment. Hence, it is useful in only highlighting the relative magnitude of the current jobs crisis controlling for duration.

Prior to the COVID19 pandemic, there has been only one instance of initial unemployment claims exceeding 1 million count in any given week - during the week of January 9, 1982, when there were 1,073,500 new claims filed. Which means that last week's print - although well below peak COVID19 filings - still stands almost 35% above the worst weekly unemployment claims filing in pre-COVID19 history. 

So here is the overall 'recovery' to-date:

You can call it 'magnificent' or 'tremendous' or you can call it 'ugly'. I guess your perspective will depend on your party affiliations and the membership in the 1% vs 99% clubs.

25/6/20: America's Scariest Charts Updated

Trump cheers today's unemployment figures... and...

Week of June 13th non-seasonally adjusted new unemployment claims were revised up to 1,463,363, from 1,433,027 published a week ago.

First estimate for the week of June 20th came in at 1,457,373.

Total initial unemployment claims filed so far during the COVID19 pandemic now sit at a massive, gargantuan 43,303,196, while estimated jobs losses (we only have official data for these through May, so using June unemployment claims to factor an estimate) are at 24,033,000. Putting this into perspective, combined losses of jobs during all recessions prior to the current one from 1945 through 2019 amount to 31,664,000.

A visual to map things out:

Charted differently:

Let's put this week's number into perspective: last week marked 14th worst week from January 1, 1967 through today. Here is tally of COVID19 initial claims ranks in history:

This is pretty epic, right? We are cheering 14th worst week in history. Note: all 14 worst weeks in history took place during this pandemic.

Of course, not all of the last week's initial unemployment claims are new claims. Initial claims can arise from people who have been kicked off prior unemployment rolls, who were denied unemployment filed earlier and so on. But the numbers above are dire. Disastrously dire. No matter how we spin the table.

25/5/20: Irish Employment: COVID19 Effects

Irish data on employment and labour force reported by CSO now comes in two streams: one is COVID pandemic-ignoring, and one accounting for potential effects of the pandemic. Here is the latest release snapshot, covering 1Q 2020:

Not to challenge CSO on their methodology that is based on a cautious interpretation of the COVID19-related new unemployment assistance claims as not being fully reflective of traditional unemployment. However, it is worth doing a simple exercise: taking data reported in the labour force survey for the period of January-March (1Q) 2020, and combining this with April 2020 monthly unemployment claims data. Here is what we get:

• Officially, per 1Q data, there were 2,353,500 people in employment in Ireland at the of March 2020. 
• COVID-19 adjusted, the above number was down to 2,070,371.
• In April 2020, Number of persons out of work, estimated to include COVID-19 claim was 694,683, up 312,372 on March figure.
• Adding April unemployment estimate to 1Q 2020 COVID-19 adjusted estimate of those in employment, estimated April 2020 employment levels in Ireland should be at around 1,758,000.

As illustrated in the chart:

21/5/20: Weekly Unemployment Claims: Updated

In the previous post, I have updated one of the charts relating to the U.S. labor market, namely the chart on employment https://trueeconomics.blogspot.com/2020/05/21520-horror-show-of-covid19.html. The data used is a mixture of monthly employment numbers and within-month weekly unemployment claims.

For consistency, here is the chart plotting weekly unemployment claims based on half-year cumulative numbers:

21/5/20: The Horror Show of COVID19 Unemployment

New initial claims data is out for last week, and so time to update one of my scary charts:

Here is a summary table:

At 2,174,329 new claims filed in the week ending May 16th, the lowest number in weekly new claims since the start of the COVID19 pandemic, it's quite tempting to say that things are improving in the labor markets. Alas, last week's print was greater than the entire recession period combined prints of four past recessions.

Cumulative first claims filed in the last 9 weeks now stand at 35,276,270, which amounts to 23.2 percent of the entire non-farm labor force in the U.S. at December 2019. 

15/5/20: U.S. Retail Sales and Employment: Pandemicession

Data through April 2020 on U.S. Retail Sales is in, so here are two charts:

Retail Sales are down 15.08% m/m in April, and down 18.25% on 1Q 2020 average. Year on year, sales are down 17.83%. Losses in retail sales in April amounted to USD 65.97 billion m/m and USD80.635 billion y/y. March-April cumulated losses amounted to USD 93 billion y/y.

Meanwhile, jobs losses in the Retail Sales sector have been dramatic as well:

Employment in Retail Sales sector fell 2,127,000 in the first two months of the COVID19 pandemic compared to year prior, with April employment declining 2,111,000 or 13.5%. Overall sector employment numbers at the end of April stood around the levels last seen in 1994, effectively erasing any employment gains made over 26 years.

Good thing all the workers in the sector are at least seeing recovery in their stocks portfolios. Otherwise, there could have been social unrest, you know...

7/5/20: Visualizing COVID19 Impact: U.S. Unemployment Claims

We though the Great Recession was bad... until we got COVID19:

The most intensive, in terms of unemployment claims, six months of the Great Recession peaked in new unemployment claims in the week of May 16, 2009 when cumulative 6 months worth of new unemployment claims filings reached - until then unprecedented - 16,815,050. At the end of the week of May 02, 2020, the same number stood at 35,569,978 or more than double the prior historical peak.

5/5/20: A V-Shaped Recovery? Ireland post-Covid

My article for The Currency on the post-Covid19 recovery and labour markets lessons from the pst recessions: https://www.thecurrency.news/articles/16215/the-fiction-of-a-v-shaped-recovery-hides-the-weaknesses-in-irelands-labour-market.

Key takeaways:
"Trends in employment recovery post-major recessions are worrying and point to long-term damage to the life-cycle income of those currently entering the workforce, those experiencing cyclical (as opposed to pandemic-related) unemployment risks, as well as those who are entering the peak of their earnings growth. This means a range of three generations of younger workers are being adversely and permanently impacted.

"All of the millennials, the older sub-cohorts of the GenZ, and the lower-to-middle classes of the GenX are all in trouble. Older millennials and the entire GenX are also likely to face permanently lower pensions savings, especially since both cohorts have now been hit with two systemic crises, the 2008-2014 Great Recession and the 2020 Covid-19 pandemic.

"These generations are the core of modern Ireland’s population pyramid, and their fates represent the likely direction of our society’s and economy’s evolution in decades to come."

29/4/20: Surprising Effects of COVID19 on U.S. Labor Force

Mid-run COVID pandemic effects on U.S. employment, unemployment and labour force participation rates via: https://voxeu.org/article/labour-markets-during-covid-19-crisis-preliminary-view

The striking collapse in estimated participation rate is down to several factors, some expected, some less so. Per authors:

"Why do so many unemployed choose not to look for work? ... Prior to the crisis, most respondents out of the labour force claimed that it was because they were retired, disabled, homemakers, raising children, students, or did not need to work. Only 1.6% of those out of the labour force were claiming that they could not find a job as one of their reasons for not searching. At the height of the Covid-19 crisis with a much larger number of people now out of the labour force, we see corresponding declines in the share of homemakers, those raising children and the disabled. However, we see a large increase in those who claim to be retired, going from 53% to 60%. This makes early retirement a major force in accounting for the decline in the labour-force participation. Given that the age distribution of the two surveys is comparable, this suggests that the onset of the Covid-19 crisis led to a wave of earlier-than-planned retirements. With the high sensitivity of seniors to the Covid-19 virus, this may reflect in part a decision to either leave employment earlier than planned due to higher risks of working or a choice to not look for new employment and retire after losing their work in the crisis."

This is interesting and far-reaching. If true, such changes provide some - rather substantial - clearing of the path to promotion and career advancement by the older generation of GenX-ers. But it also might be a feature of the COVID-relted layoffs that could have been accompanied by the longer-term jobs destruction in sub-occupations and sub-sectors that tend to simultaneously attract senior or in-retirement workers and be associated with higher degree of person-to-person contacts, e.g. in basic services.

Either way, the implications for the younger generations of the COVID19 crisis remain highly uncertain, but for older generations, earlier retirement and forced retirement is usually associated with lower income in retirement. After all, people in retirement age were not working for purely social reasons before COVID19 pandemic hit.

23/4/20: U.S. Labor Force Participation Rate Heading into COVID19 Disaster

Adding to the two scariest charts in economic history (see https://trueeconomics.blogspot.com/2020/04/1942020-two-scariest-charts-in-economic.html), a third chart, showing changes in the U.S. labor force participation rates during and following recessions:

The above clearly shows that 2008-2009 recession has been unique in the history of the U.S. economy not only in terms of the unprecedented duration of unemployment (link above), but also in terms of the scale of exits from the labor force. In fact, this was the first recession on record that resulted in post-recession recovery not reaching pre-recession high in terms of labor force participation rates.

19/4/2020: Two Scariest Charts in Economic History

I have been posting quite a bit on U.S. unemployment and jobs destruction numbers coming from the COVID-19 pandemic. So here are two charts to watch into the future, and I will be updating these throughout the crisis here.

The first chart plots evolution of non-farm payrolls index for each official recession. I used as the index base average payroll numbers for 6 months prior to the first month of the recession. I then compute and plot the index from month 1 of the recession through the last month prior to the next recession.

The second chart is the average duration of unemployment claims or average weeks unemployed. Again, series start from the first month of officially-declared recession and run until the subsequent recession.

Both charts illustrate the contradictory nature of the post-2008-2009 recession recovery. Whilst the recovery has been the longest in duration (chart 1 above), it has not been the most dramatic in terms of employment creation relative to prior pre-recession peak (line "2008-2009" solid segment runs longer than any other line, but does not gain heights of at least 6 prior recoveries.  Per chart 2 above, recovery from 2008-2009 recession has been associated with unprecedented length of duration of unemployment. The series here stop at the end of February 2020, so they do not account for the recent jobs losses, simply because there has not been, yet, official announcement of a recession.

You can read on March-April jobs losses here: https://trueeconomics.blogspot.com/2020/04/16420-four-weeks-of-true-unemployment.html and in the context of prior recessions here: https://trueeconomics.blogspot.com/2020/04/18420-shocking-wave-of-jobs-destruction.html.

Stay tuned, as I will be updating these two charts as data arrives.

16/4/20: Four Weeks of True Unemployment Numbers: #Covid19

The U.S. has added 5.245 million more unemployment claims in the week ending April 11, 2020, with additional 9,000 claims added to the April 4, 2020 week total. In summary,

• Week ending March 21: official unemployment figures rose 3,307,000
• Week ending March 28: new claims 6,867,000
• Week ending April 4: new claims 6,615,000
• Week ending April 11: new claims 5,245,000

Four weeks total is now 22,034,000. As noted here: https://trueeconomics.blogspot.com/2020/04/1342020-four-weeks-of-unemployment.html last four weeks of increases in unemployment in the U.S. have fully erased all cumulative jobs gained during the 2009-2019 'recovery' period.

This is by a mile not a fully accurate picture of true extent of jobs losses. As noted by the researchers in the https://bfi.uchicago.edu/insight/blog/key-economic-facts-about-covid-19/#unemployment-rate: many unemployed do not seek unemployment benefits, opting to drop out of the labor force instead. Why?

1. Eligibility for unemployment assistance is quite restrictive in the U.S.
2. States' unemployment support systems are both cumbersome and severely overloaded in the present environment.
3. Many unemployed fear Federal retribution against their migrant spouses (including legal migrants) and many are themselves on green cards, making them a potential target for removals.
4. Many unemployed become severely discouraged by the lack of potential jobs to continue job-seeking.

University of Chicago researchers used data from Nielsen survey to estimate the impact of early stage Covid pandemic on labor force participation rates. These numbers imply a drop in labor force participation from the officially-reported 64.2% to 57%. 

The research conducted through April 8th suggested that some 20 million Americans have lost their jobs due to COVID19. Adding to these 3 days to get us through April 11 would have pushed the total number of unemployed to around 3,140,000-3,969,000 more unemployed to the 22,034,000 total reported above. Splitting the difference, we can estimate new claims filed, pending and not filed due to reasons (1)-(4) above at closer to 25,500,000. 

My estimates are roughly in line with those prepared by Alexander Bick of ASU, who estimated (https://azbigmedia.com/business/unemployment-rate-jumps-from-4-5-to-20-2-asu-analysis-shows/) that through the second week of April:

• The employment rate decreased from 72.7% to 60.7%, implying 24 million jobs lost
• The unemployment rate increased from 4.5% to 20.2%
• Hours worked per working age adult declined 25% from the second week of March.

13/4/20: Four Weeks of Unemployment Spikes: U.S. Jobs Losses in #Covid19

COVID-19 social toll: according to Deutsche Bank Research, since the end of the 2008-2009 Great Recession through mid-March 2020, the U.S. total new jobs creation amounted to ca 22 million jobs. Since then, the economy has lost over 16.8 million jobs over the first three weeks of the pandemic, and according to the DB forecast, the U.S. is now on-track to lose 25 million jobs over the four weeks, once last week numbers come in.

• Week ending March 21: official unemployment figures rose 3.3 million
• Week ending March 28: official unemployment claims rise 6.9 million
• Week ending April 4: additional 6.6 million new unemployment claims
• Week ending April 11: ???

Note: claims filed do not fully reflect actual unemployment levels in the economy. In fact, they underestimate, severely, the true extent of unemployment.

Now, remember, the Millennials entered their careers in the periods of the Global Financial Crisis, the Great Recession and the Eurozone debt crisis. They are now going through career maturation stage (faster growth in income stage) amidst this pandemic. Or as I asked on Twitter a few minutes ago: who is going to buy Boomers' properties inherited by X-ers if the Millennials are skinned?..

2/4/20: COVID19 in three charts

#COVID2019 economy in three pics:

U.S. unemployment claims, week 2 of filings:

Irish unemployment claims, first month of filings:

 World GDP forecast after one month of Covid pandemic:

FUGLY! All around.