10M new unemployment claims over the past 2 weeks, forecast is for 20M by summer

[rolltide]

pre-Covid record for a week was just under 700k in 1982 ... last week was 3.34M, this week 6.65M for a whopping 10 million new unemployment claims in just two weeks

https://www.ntd.com/us-jobless-claims-soar-to-6-6-million-shattering-record_451314.html

Jobless claims filed in the United States soared to a record high of over 6 million for the week ending March 28, as CCP virus-related lockdowns and closures drive deep layoffs.

The number of initial jobless claims filed across the country, which is a measure of the number of Americans filing new unemployment claims, surged to 6,648,000, an increase of 3,341,000 from the previous week’s revised level, the Department of Labor figures show

A Washington-based think tank has made a dire forecast of 20 million jobs lost by summertime.


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[michael777]

I will go over 20 million,LOCK

 

[rolltide]

for point of reference there were 130 million Americans in the workforce in Jan 2020....

 

[Knightrofins]

Many employers whose business is slow at the moment are telling their employees to file for UE as they will be getting full pay for a few weeks. Then they plan on filing for the PPP loan and plan on rehiring their employees by June 30

 

[rolltide]

Many employers whose business is slow at the moment are telling their employees to file for UE as they will be getting full pay for a few weeks. Then they plan on filing for the PPP loan and plan on rehiring their employees by June 30

the PPP loan is for 8 weeks of pay with a max of $19230.77 per person (if they make >100k). I understand employers will owe it back if they lay anyone off but can an employee get both UE through 6/30/20 and the PPP from the employer? I assumed it was an either/or situation and the laid-off employee gets paid through UE while the remaining employees get paid from PPP fund at an 8 week rate of 1.25x their salary up to annualized 100k (so, max of 19230.77).

 

[Knightrofins]

I believe that its once the employer gets the PPP loan, they can pay their employees and the loan "could" be forgiven if they maintain employees, dont drop their wages, and if business is less than 50% of what it was last year (or something like that).

Truth be told, banks dont even know the rules just yet as the SBA is still trying to figure every little detail out.

I know you had commented on other threads regarding losing business and your employees but i wonder if you have spoken to your bank about a PPP loan? It may be able to help you out.

 

[Dave007inVegas]

for point of reference there were 130 million Americans in the workforce in Jan 2020....

[FONT=Verdana,Tahoma,Arial,Calibri,Geneva,sans-serif]I love it when things are put into perspective.[/FONT]

 

[rolltide]

I believe that its once the employer gets the PPP loan, they can pay their employees and the loan "could" be forgiven if they maintain employees, dont drop their wages, and if business is less than 50% of what it was last year (or something like that).

Truth be told, banks dont even know the rules just yet as the SBA is still trying to figure every little detail out.

I know you had commented on other threads regarding losing business and your employees but i wonder if you have spoken to your bank about a PPP loan? It may be able to help you out.

my accountant sent me info on it and said it will run through the banks starting tomorrow but the rules are generally unclear. I asked him that same example and he doesn't know yet but that is my situation. if I lay an employee off and put her back on payroll by 6/30/20 can she both collect unemployment and get paid through the PPP fund for 8 weeks of wages at 1.25x her annualized rate?

I know for PPP at least 75% needs to be used directly on salaries and the other 25% on things like rent and utilities but can't get an answer on the either/or part...

if it is either/or she will make more with 3 months of unemployment but if I have no work for her on 7/1/20 and do the PPP then I either have to put her back on payroll (where her UE stops) or pay back the PPP. seems an odd trade off

 

[rolltide]

oh, btw, my accountant's response was since PA is not increasing UC rates in this period the best thing to do is lay your employee off so they can collect ASAP and then try to figure this stuff out as the rules become more clear. As you stated, he reiterated that banks are caught in the headlights here because they are the ones tasked with policing the program but aren't sure what the rules are

typical government stuff....