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American employers shed 20.5M jobs, unemployment skyrockets

American employers shed 20.5M jobs, unemployment skyrockets

The U.S. jobs report released on Friday showed that American employers cut more than forecast jobs in April, while the unemployment rate skyrocketed, largely reflecting the impact of the Covid-19 on the labor market.   

Analysts predicted a job cut of 22,000,000, compared to the actual reading of 20,500,00 shed jobs, while the previous reading of 701,000 jobs lost was revised up to 870,000 job-shed in March.

The unemployment rate soared from 4.4 percent to 14.7 percent, compared to analysts’ projections of 16.0 percent.   

The average hourly earnings, however, surged 4.7 percent last month after a 0.5 percent increase in March, compared to estimates of 0.5 percent soar. The annual earnings growth rose to 7.9 percent from 3.1 percent.

While the downbeat figures largely reflect the hard hit of the coronavirus on the U.S. labor market, it is important to note that NFP data was collected in the middle of last month, before many layoffs, so there could be much worse to come.

Data released on Thursday showed that initial jobless claims increased by 3.1 million in last week, coming below forecasts of 3.1 million.

The dollar index, which tracks the movements of the green currency versus a basket of major currencies, traded near the session’s open at 99.84, as of 12:42 GMT.

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