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The number of Massachusetts residents who have filed initial claims for unemployment has jumped again, this time by over 180,000.
In total, 181,062 people filed for unemployment in the week ending March 28, according to the federal Department of Labor. That’s an increase of over 32,000 more than the 148,452 claims filed in the week ending March 21. Many restaurants and other service businesses started to close March 17, following an order by Gov. Charlie Baker that banned dine-in restaurant service. In subsequent days, over 84,000 hotel workers and employees at related firms were put out of work as business travel and tourism evaporated.
The number of Bay Staters claiming unemployment for at least two weeks in a row also doubled last week, to 182,023.
During the Great Recession, the state hit a high of 304,530 unemployed in January 2010.
Remarks by the president of the Federal Reserve Bank of Boston Wednesday and a set of new reports suggest both the national and state economies are headed for recessions, with Boston Fed President Eric Rosengren predicting the country could hit its Great Recession jobless rate.
Massachusetts’ numbers are in line with a dramatic spike in national unemployment claims: 6.6 million claims were filed across America in the week ending March 28, double the already record-breaking 3.3 million filings the week prior.
The accelerating layoffs have led many economists to envision as many as 20 million lost jobs by the end of April. That would be more than double the 8.7 million jobs lost during the Great Recession. The unemployment rate could spike to as high as 15 percent this month, above the previous record of 10.8 precent set during a deep recession in 1982.
Many employers are slashing their payrolls to try to stay afloat because their revenue has collapsed, especially at restaurants, hotels, gyms, movie theaters and other venues that depend on face-to-face interaction. Auto sales have sunk, and factories have closed.
More than two-thirds of the U.S. population are under stay-at-home orders, imposed by most U.S. states.
The White House and Congress expanded the unemployment benefits system in last week’s $2.2 trillion economic rescue package. That legislation added $600 a week in jobless aid, on top of what recipients receive from their states. This will enable many lower-income workers to manage their expenses and even increase their purchasing power and support the economy.
It also makes many more people eligible for jobless aid, including the self-employed, contractors, and so-called “gig economy” workers such as Uber and Lyft drivers.
Material from the Associated Press was included in this report.
