The Commerce Department said on Tuesday the trade deficit jumped 5.9% to $67.1 billion, the widest since August 2006.
WASHINGTON (Reuters) – The U.S. economy suffered its sharpest contraction in at least 73 years in the second quarter because of the disruptions from the coronavirus, the government confirmed on Wednesday.
Gross domestic product plunged at a 31.4% annualized rate last quarter, the deepest drop in output since the government started keeping records in 1947, the Commerce Department said in its third estimate of GDP. Output was previously reported to have contracted at a 31.7% pace in the second quarter.
The U.S. economy shed a record 20.5 million jobs in April as the unemployment rate skyrocketed to 14.7% — more than quadrupling from the rate seen before the coronavirus outbreak — according to government data released Friday.
Why it matters: It’s by far the worst jobs report in history, highlighting the depth of the unprecedented toll the pandemic is having on the labor market.
By the numbers: Not since the Great Depression has the unemployment rate been this high.
- The speed with which the job destruction happened is also staggering: the unemployment rate jumped 10.3% in a single month, which has never happened before in history.
Between the lines: You’re only counted as unemployed if you’re actively looking for work, but many Americans aren’t looking for work because of state-imposed lockdowns — effectively warping the rate.
- Another 9.9 million people were jobless, but not counted as unemployed because they weren’t actively looking for work.
- Labor Department officials also said if certain jobless workers were considered unemployed rather than “absent from work,” then the unemployment rate “would have been almost five percentage points higher,” per the release.