US payrolls plunge 701,000 in March amid the start of a job market collapse
Nonfarm payrolls dropped by 701,000 in March, according to Labor Department numbers released Friday that only begin to show the economic damage wrought by the coronavirus crisis.
It was the first decline in payrolls since September 2010 and came close to the May 2009 financial crisis peak of 800,000. Some two-thirds of the drop came in the hospitality industry, particularly bars and restaurants forced to close during the economic shutdown.
That headline number reflects the count from establishments the government surveyed for its report. The household survey, which asks individual residences about their employment situation, showed a plunge of nearly 3 million.
The unemployment rate rose to 4.4% — from 3.5% — its highest level since August 2017 as employers just began to cut payrolls ahead of social distancing practices that shut down large swaths of the U.S. economy in order to stop the virus’s spread. An alternative …continued .
[Source: CNBC News]