U.S. unemployment rate up to record 14.7 pct in April as COVID-19 ravages economy

U.S. employers cut a staggering 20.5 million jobs in April, and the unemployment rate soared to 14.7 percent, as COVID-19 continues to ravage the economy, the U.S. Bureau of Labor Statistics reported Friday.

The unemployment rate in April, up by 10.3 percentage points from that in March, is the highest rate and the largest over-the-month increase in the history of the series since January 1948, the bureau noted.

"Employment fell sharply in all major industry sectors, with particularly heavy job losses in leisure and hospitality," the bureau said, noting that the changes in these measures reflect the effects of the COVID-19 pandemic and efforts to contain it.

In April, employment in leisure and hospitality plummeted by 7.7 million, or 47 percent, the report showed. Almost three-quarters of the decrease, or 5.5 million, occurred in food services and drinking places.

The number of unemployed persons who reported being on temporary layoff surged about tenfold to 18.1 million in April, while the number of permanent job losses increased by 544,000 to 2.0 million, according to the report.

The report also showed that the labor force participation rate dropped by 2.5 percentage points over the month to 60.2 percent, the lowest rate since January 1973, when it was 60.0 percent.

The new unemployment data came one day after the bureau reported that more than 33 million Americans have filed for jobless claims as the COVID-19 fallout continues to ripple through the country.