Unemployment Claims Shatter Records as Coronavirus Outbreak Freezes Economy
March 26, 2020
Initial claims for unemployment insurance shattered records last week, climbing to 3.283 million from 282,000 the previous week and 4.7 times higher than the previous record. The coronavirus outbreak is a truly unprecedented event in American economic history. Unlike past economic slowdowns, the outbreak's sudden onset is flash freezing the economy by forcing businesses to shut down and putting millions of American workers out of jobs.
The closest historical comparison would be natural disasters like major hurricanes, which lead to sudden spikes in unemployment claims, but even those comparisons are inadequate. The effects of hurricanes tend to be concentrated, affecting specific geographic regions and snapping back in the weeks after as communities recover. The coronavirus outbreak is akin to a major hurricane occurring in every state around the country for weeks on end.
The closest historical comparison would be natural disasters like major hurricanes, which lead to sudden spikes in unemployment claims, but even those comparisons are inadequate. The effects of hurricanes tend to be concentrated, affecting specific geographic regions and snapping back in the weeks after as communities recover. The coronavirus outbreak is akin to a major hurricane occurring in every state around the country for weeks on end.
Table: Coronavirus Outbreak Compared to Previous Natural Disasters
| Week Ending | Description | Claims Week Prior (000s) | Claims Week Of (000s) | WoW # Increase (000s) | WoW % Increase |
| 9/10/05 | Hurricane Katrina | 326 | 422 | 96 | 29% |
| 11/10/12 | Hurricane Sandy | 365 | 446 | 81 | 22% |
| 9/2/17 | Hurricane Harvey | 239 | 299 | 60 | 25% |
| 3/14/20 | 2 Weeks Ago | 211 | 282 | 71 | 34% |
| 3/21/20 | Last Week | 282 | 3,283 | 3,001 | 1,064% |