1.5 Million File For Unemployment, But Continuing Claims Decrease Slightly

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Pedestrians pass a New York State Department of Labor office June 11 in Queens. The Federal Reserve expects the U.S. unemployment rate to still be more than 9% by the end of 2020.

Frank Franklin II/AP

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Frank Franklin II/AP

The Coronavirus Crisis
The Rich Have Stopped Spending And That Has Tanked The Economy

The nation’s unemployment rate was 13.3% last month, even as states began to ease lockdowns and reopen their economies. That’s down slightly from April’s spike to 14.7%, which was the highest since the Great Depression. The Federal Reserve expects it to still be more than 9% by the end of 2020.

With consumers accounting for a big chunk of economic activity, this week’s retail sales report was somewhat of a bright spot. Sales jumped 17.7% in May, with sharp increases in most categories. But that followed record drops in the two prior months, and sales are still far below last year’s levels.

The recovery is being held back in part because the wealthiest U.S. households have been spending less during the coronavirus recession than their lower-income counterparts, according to new research out this week.