CARY, N.C. -

The U.S. Department of Labor reported on Thursday morning that another 3,839,000 workers filed initial claims for unemployment benefits last week, lifting the six-week total to above 30 million individuals because of COVID-19.

The figure likely adds more challenges to any tenuous improvement in vehicle sales as well as a recovery for the general economy.

“As states begin the process of reopening and Americans return to work, today’s unemployment report reflects once again the hardship caused by the coronavirus pandemic,” Secretary of Labor Eugene Scalia said in a statement. “The president’s actions and policies will continue to support American workers during this crisis. All 50 states are now delivering the $600 additional weekly unemployment benefit provided by the CARES Act. The department has disbursed more than three-quarters of a billion dollars to states to help them deliver this relief as quickly as possible as Americans follow the guidance of public health officials to ‘slow the spread.’

“Looking ahead, as workplaces reopen, we must ensure that individuals transition from unemployment back into the workforce,” Scalia continued. “Key to this process will be workplace safety. The Occupational Safety and Health Administration has been at the forefront of workplace safety since January, delivering important resources and guidance to businesses to help them keep workers safe, and investigating and responding to worker complaints.”

Unless employees have been able to work from home during the crisis, workers likely need a vehicle to get to their job. And those individuals still gainfully employed haven’t been rushing to dealerships and taking out financing to acquire a vehicle.

“April is likely the bottom for auto sales, so hopefully there’s only room for improvement from here,” Edmunds’ executive director of insights Jessica Caldwell said in a news release distributed soon after Thursday’s unemployment report.

“But with employment and consumer confidence at new lows, the question remains: Will people be in the position to purchase new cars? Although automakers are doing their part by offering landmark incentives, those might not be enough if consumers cannot recover financially from this crisis,” Caldwell said.

And as if the unemployment figure wasn’t already bleak, U.S. economic growth shrank by 4.8% in the first quarter, according to the Commerce Department’s initial estimate released on Wednesday. National Association of Federally-Insured Credit Unions chief economist and vice president of research Curt Long noted the release is the “first preview into the economic effects” of the coronavirus pandemic, which are expected to be more prevalent in the second quarter.

“We are undoubtedly in a recession now, and although it may begin to ease up as some states open limited parts of their economies, it is unlikely the economy will truly get back on its feet for some time,” Long said.

Meanwhile at the Federal Reserve, the Federal Open Market Committee (FOMC) voted unanimously to leave interest rates unchanged. In his usual press conference following each policymaker meeting, chair Jerome Powell acknowledged the financial challenges businesses and individuals now are facing.

“The forceful measures that we as a country are taking to control the spread of the virus have brought much of the economy to an abrupt halt. Many businesses have closed, people have been asked to stay home, and basic social interactions are greatly curtailed. People are putting their lives and livelihoods on hold, at significant economic and personal cost. All of us are affected, but the burdens are falling most heavily on those least able to carry them. It is worth remembering that the measures we are taking to contain the virus represent an investment in our individual and collective health. As a society, we should do everything we can to provide relief to those who are suffering for the public good,” Powell said in his opening statement.

“At the Fed, we are doing all we can to help American families and businesses weather this difficult period. When the spread of the virus is under control, businesses will reopen, and people will come back to work. We will continue to use our tools to assure that the recovery, when it comes, will be as robust as possible,” Powell went on to say.

Last week, S&P Global Ratings tried to project improvement but analysts said, “Although we expect the drop in economic activity to be sharp but fairly short, the path to recovery remains highly uncertain in its timing and trajectory until an effective treatment or vaccine are in place.”

S&P Global Ratings explained corporate borrowers suffered first from the sudden economic stop and the collapse in oil prices, with a disproportionate effect on those at the lower end of the rating scale and in the most-exposed industries. The firm indicated this development comes after a record number of corporates came to market with first-time ratings in the ‘B’ category in the two to three years leading up to the current situation.

Although its economic forecasts continue to worsen, S&P Global Ratings pointed out that financing conditions have been gradually improving, bolstered in particular by the Federal Reserve’s historic liquidity facilities, pushing March corporate bond issuance to an all-time monthly high.

“Still, we see more-restrictive lending conditions amid the material contraction in economic activity. Thus far, borrowers with stronger credit quality have been able to largely resume issuing debt, while funding costs remain prohibitively high and access to funding more challenging for weaker borrowers in an environment of collapsing revenues,” the firm said.

“Unprecedented fiscal and monetary support are critical to preserve the economic fabric and well-functioning capital markets, thereby supporting the chances of a stronger path to recovery,” S&P Global Ratings continued. “But it comes at the expense of higher government debt and puts the onus on policy choices in the handling of health issues, the degree and nature of support to the economy, and later on the exit path — all of which will have significant effects on the recovery trajectory.”