1.31m more Americans sought unemployment benefits last week
CONTINUING CLAIMS FELL TO 18.1M IN WEEK ENDED JUNE 27
Applications for unemployment benefits in the US declined last week by more than projected, easing concerns of a renewed downturn in the labour market after several large states reported a pickup in coronavirus cases.
Initial jobless claims in regular state programmes fell by 99,000 — the most in a month — to 1.31 million in the week ended July 4, Labor Department data showed yesterday. The median forecast in a Bloomberg survey of economists called for 1.375 million.
Continuing claims — the total number of Americans claiming ongoing unemployment benefits in state programmes — declined to 18.1 million in the week ended June 27, compared with a median projection of 18.8 million.
Firings ebb
The latest numbers indicate that firings have continued to ebb, though job losses remain stubbornly high and labourmarket gains may still be at risk of stalling in coming weeks. Before a surge in new virus cases that prompted several states — including Texas and Florida — to delay or walk back reopening plans, employers were adding millions of Americans back to payrolls.
The reversal in policy has led a cohort of rehired workers to find themselves out of work once again.
Initial claims for regular state programmes remain about double the worst week in the 2007-2009 recession, indicating a distressing number of workers continue to get caught up in the economic fallout of the pandemic.
The high level of initial and continuing claims “provides a cautionary message about the difficulties involved and the time it will take to heal a labour market thrown into turmoil by unprecedented circumstances,” Joshua Shapiro, chief
The road back to February’s peak employment levels will be a long and bumpy one.”
Joshua Shapiro |
Chief US economist at Maria Fiorini Ramirez
US economist at Maria Fiorini Ramirez, said in a note. “The road back to February’s peak employment levels will be a long and bumpy one.”
Without seasonal adjustments, state initial claims fell by a more-moderate 32,000 from the prior week.
Of states that have seen a recent surge in outbreaks, California and Florida saw decreases in unadjusted initial claims from the prior week. Arizona was little changed, while Texas initial claims rose by about 21,000.
Several other states reported significant increases in initial claims including New Jersey, Louisiana, Maryland, Nevada and Tennessee.