The U.S. is in a severe recession caused by the sudden shutdown due to the COVID-19 pandemic. Since the lock down began, the nation has lost 21.4 million jobs. Employers cut 881,000 in March and another 20.5 million in April, the largest one-month loss in the nation’s history. Losses already exceed those of the Great Recession, in which 8.7 million Americans were laid off.
More than 1.8 million workers in Texas have filed initial claims for unemployment insurance since mid-March. Though claims peaked in early April, they remain elevated as the Texas Workforce Commission struggles to process a backlog of applications. Employment data for the state and its 25 metro areas won’t be released until May 22, but unemployment rates and job loss percentages will likely mirror that of the U.S.
Nearly 380,000 Houstonians have filed for unemployment insurance between March 21 and May 2. Sectors with the most claims include full-service restaurants, offices of dentists, temporary help services, department stores, and limited-service restaurants. Local claims will likely top 400,000 by the end of May. Houston’s unemployment rate will mirror the national rate, hitting the mid-teens in April and possibly reaching 20 percent in May.
The oil markets have begun the slow and painful recovery process from the collapse brought on by the COVID-19 pandemic. At the peak, 4 billion people lived under some form of restriction or isolation, according to the International Energy Agency (IEA). Since mid-April, 65 countries have reopened. IEA expects the number of people living under restrictions should drop to 2.8 billion by the end of May. Another 85 countries will ease restrictions in June.
Baker Hughes reports the number of rigs actively drilling for oil or gas fell to 339 in mid-May, a 57.4 percent drop from since the first of the year. There are fewer rigs working in the U.S. today than there were at the bottom of the fracking bust when count fell to 404 rigs in May ’16.
Wells Fargo Economics & Financial Report / Sep 23, 2021
While we were picking up tree limbs from the yard, data released this week generally showed a stronger economy in August than many expected in the wake of surging COVID cases.
Wells Fargo Economics & Financial Report / Feb 08, 2020
U.S. employers added 225K new workers to their payrolls in January, which handily beat expectations. But the factory sector shed jobs for the third time in four months, and net layoffs were reported for finance and retail as well.
Wells Fargo Economics & Financial Report / Mar 08, 2022
February\'s employment data showed the economy had strong momentum, but that seems pretty dated now with Russia\'s invasion of Ukraine and the Fed\'s shift to a more hawkish tone on monetary policy.
Wells Fargo Economics & Financial Report / Aug 29, 2020
Employers added jobs for the fourth consecutive month in August, bringing the total number of jobs recovered from the virus-related low to 10.5 million.
Wells Fargo Economics & Financial Report / Mar 14, 2023
Financial markets were looking for validation that January\'s unexpected strength was not a fluke and that the downward slide in economic momentum experienced late last year had stabilized.
Wells Fargo Economics & Financial Report / Apr 01, 2020
Net Treasury issuance is set to surge in the coming weeks and months. At present, we look for the federal budget deficit to be $2.4 trillion in FY 2020 and $1.7 trillion in FY 2021.
Wells Fargo Economics & Financial Report / Sep 20, 2022
Financial markets reacted in a zig-zag pattern to this week\'s economic data ahead of the next FOMC meeting. Price pressure is still not showing the sustained slowdown the Fed needs before it takes its foot off the throttle of tighter policy.
Wells Fargo Economics & Financial Report / Jan 12, 2021
The manufacturing sector is showing a great deal of resilience, with the ISM Manufacturing survey exceeding expectations, at 60.7, and factory orders remaining strong.
Wells Fargo Economics & Financial Report / Aug 09, 2023
Employment growth was broad-based, though reliant on a 87K gain in health care & social assistance. Modest gains from construction, financial activities and hospitality also contributed to private sector job growth.
Wells Fargo Economics & Financial Report / Jun 08, 2021
This week\'s light calendar of economic reports showed supply chain disruptions tugging a little at economic growth.