TGIF! Today is Friday, May 8 and we see that the market jumps again as investors bet the worst has passed, the mortgage bailout swells to 4.1 million borrowers and a record 20.5 million jobs were lost in April. We are also reading that 78% of workers say their unemployment is temporary and unemployment benefits will be reduced after July 31. Enjoy the articles and have a great weekend everyone!
Stocks rose Friday even after the ugliest monthly jobs report ever as investors bet the worst of the coronavirus and its impact on the economy has passed.
In the past week, 225,000 more borrowers took advantage of government and bank mortgage forbearance programs. The rise brings the total to nearly 4.1 million homeowners not making their monthly mortgage payments, representing 7.7% of all active mortgages.
The impact of the coronavirus-induced economic shutdown tore through the U.S. labor market in April at historic levels, slashing 20.5 million workers from nonfarm payrolls and sending the unemployment rate skyrocketing to 14.7%, the Labor Department reported Friday.
The economy lost a record 20.6 million jobs in April, but 78.3% of those worker see their layoffs as temporary. The number of employees who saw themselves as temporarily furloughed was 18.06 million, up from 1.84 million in March.
Jobless workers may be getting a sizable unemployment check as a result of the recently enacted federal coronavirus relief law. That pay boost is unlikely to continue past July.