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US economy shrank 3.5% in 2020 after growing 4% last quarter
Read full article: US economy shrank 3.5% in 2020 after growing 4% last quarterThat gain had followed a record-shattering 31.4% annual plunge in the April-June quarter, when the economy sank into a free-fall. The damage from the virus caused GDP to contract at a 5% annual rate in last year's January-March quarter. Housing grew at a sizzling 33.5% annual rate, business investment at a 13.8% rate. That was the deepest annual setback since the economy shrank 11.6% in 1946, when the economy was demobilizing after World War II. That was lower than the 1.6% annual GDP gains during the Obama administration, a period that also included a recession.
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US layoffs remain elevated as 803,000 seek jobless aid
Read full article: US layoffs remain elevated as 803,000 seek jobless aidThe pace of layoffs has since declined but remains historically high in the face of the resurgence of COVID-19 cases. A separate benefits program for jobless people who have exhausted their regular state aid and another benefits program for self-employed and gig workers will also be extended only until early spring, well before the economy will likely have fully recovered. Nearly 10 million of the 22 million people who lost jobs when the pandemic hit in the spring are still unemployed. The number of people receiving aid under the second program — the Pandemic Emergency Unemployment Compensation program, which provides federal jobless benefits to people who have exhausted their state aid — fell by nearly 8,200 to 4.8 million. All told, 20.4 million people are now receiving some type of unemployment benefits.
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