The First Official U.S. Labor Department Unemployment Numbers Since Coronavirus Show 20.5 Million Americans Out of Work

The first look at U.S. unemployment numbers by the U.S. Department of Labor since the coronavirus began its U.S. spread show 20.5 million Americans are now out of work.

That equates to a 14.7% unemployment rate, a huge increase from what was a 50-year low of 3.5% just a few months ago.

Obviously, that dramatic surge in the unemployed is a direct result of government-mandated shutdowns of large swaths of the U.S. economy in an attempt to mitigate the spread of Covid-19.

And, it can’t be overlooked, the hit to the psyche of many Americans due to coronavirus reporting has also played into those unemployment numbers and will likely continue to do so in the coming months.

If one positive can be found in the numbers released today it’s that 18.1 million of the 20.5 million report being on temporary layoff.

In this first look at the U.S. unemployment stats since coronavirus from the Bureau of Labor Statistics, only 544,000 report as permanent job losses.

These number give hope that a significant percentage of the recently unemployed will be back to work after only a brief period of time.

That, however, relies on U.S. economic activity returning to a somewhat normal level in the very near future.

And the U.S. economy coming back to life depends not only on state and local governments relaxing lockdown and stay-at-home orders, but also individuals overcoming concerns about getting out and utilizing the businesses that will employ those who are “temporarily laid off.”

A tall order to be sure.

Which means, the positive aspect of 18.1 million Americans being on temporary layoff could easily turn negative when economic demand does not appear and the “temporary” designation becomes “permanent” in the coming months.

We all have to hope this does not become the case.

The negative ramifications for the U.S. economy are significant if it does.

But, the psychology of the American consumer, as well as the medical news and advancements as they relate to coronavirus, will play a huge part in what happens next.

Right now, both are unpredictable.

With many states loosening their lockdown restrictions, we should have somewhat of an idea how things will proceed as May comes to a close.

I’m rooting for most of those 18.1 million to be back to work this summer, but realistic enough to know that just might not happen.