--- title: "Economists Predict “Tsunami” of Unemployment" description: "The number of unemployment claims for the Pandemic Emergency Unemployment Compensation (PEUC) program is growing exponentially, raising the alarm." date: "2020-08-21" modified: "2020-08-21" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/the-byte/tsunami-unemployment" categories: - "Future Society" tags: - "coronavirus" - "covid19" - "the digest" - "Unemployment" --- # Economists Predict “Tsunami” of Unemployment ![The number of unemployment claims for the Pandemic Emergency Unemployment Compensation (PEUC) program is growing exponentially, raising the alarm.]() *\Image: Labor Department via The New York Times\* ## Mass Unemployment The US economy may be in for a rough ride in the coming months. According to a [press release]() by the US Department of Labor, the number of unemployed people in the country making claims for the Pandemic Emergency Unemployment Compensation (PEUC) program is growing exponentially. The program, which falls under the CARES Act, supports unemployed Americans who already used up 26 weeks of state unemployment benefits. Claims grew from just 27,000 people on April 11 to 1.3 million by August 1, according to the US Department of Labor. ## Historical Highs Last week, the Labor Department reported that [1.1 million workers]() filed new claims for state unemployment, an increase of almost 130,000 compared to the previous week. "We’re still at a historically high level of claims," Scott Anderson, chief economist at Bank of the West, [told *The New York Times*](). "The labor market is in the ICU." ## The Tsunami Economists are worried tough times are ahead. "The real tsunami is coming," Mark Zandi, chief economist at Moody's Analytics, [told *Axios*](). "My guess is at this point hiring in the industries that have been hit hard is going to abate." Experts are predicting the economy will further slow before the end of the year. Without any kind of fiscal stimulus, unemployment recovery could go on for quite some time. "I think the labor market is set to start weakening again here, particularly if Congress and the administration don’t get it together and pass more support," Zandi added. **READ MORE:** [Economists foresee an unemployment "tsunami" coming]() \[*Axios*\] **More on this shit show of a year:** *[Terrifying Argument Says Economy Will Collapse for Real in August]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()