US jobless claims drop marginally
Economic outlook remains complicated as virus outbreaks continue
Another 1.5 million workers filed for unemployment insurance for the first time last week, a marginal drop of just 58,000 claims from the week before, despite reopening efforts around the country.
Since the coronavirus began earlier this year, there have been 13 straight weeks where more than a million people have filed for unemployment for the first time. The previous record before the coronavirus was in 1982.
The numbers come as the country’s reopening is in nearly full swing in many states across the country. Yet the economic outlook is complicated by continuing coronavirus outbreaks across the country. Twenty-one states are seeing an increase in their daily average of new coronavirus cases this week, compared to last week, according to data. New infections nationwide also surged.
The total number of people receiving benefits edged down slightly to 20.5 million; more than 45 million people have claimed unemployment at some point during the pandemic.
About 9.2 million people are also receiving unemployment from a new supplemental benefit available to self-employed and gig workers, bringing the total number of people receiving benefits to about 29 million.
The number of initial jobless claims has slowed as employers have begun rehiring workers as businesses reopen. And there have been other positive indications: retail sales spiked 17.7 per cent in May, although they continue to be down nearly 8 per cent since February.
Deep pain ahead
Analysts and key economic leaders like Federal Reserve Chair Jerome H. Powell continue to warn that despite bright signs, the economic pain could be deep and long lasting for many sectors of the economy.
The unemployment rate remains the highest its been since the Great Depression. The official rate for May was 13.3 per cent, but the Bureau of Labour Statistics said that it would have been closer to 16.3 per cent if not for an error its workers are making in the data collection process.