1.9M seek US jobless aid even as layoffs slow
NM continued unemployment claims were up last week
WASHINGTON — Nearly 1.9 million people applied for U.S. unemployment benefits last week, evidence that many employers are still cutting jobs even as the gradual reopening of businesses has slowed the pace of layoffs.
The total number of people who are receiving jobless aid rose slightly to 21.5 million, down from a peak of nearly 25 million two weeks ago but still at a historically high level. It shows that scattered rehiring is offsetting only some of the ongoing layoffs with the economy mired in a recession. Thursday’s latest weekly number from the Labor Department is still more than double the record high that prevailed before the pandemic.
Still, the number of people who applied for benefits last week marked the ninth straight decline since applications spiked in midMarch. The job market meltdown that was triggered by the coronavirus may have bottomed out as more companies call at least some of their former employees back to work.
In New Mexico, however, despite Gov. Michelle Lujan Grisham’s announcement last week that restaurants, salons and other business types would be able to open at reduced capacity at the start of June, the number of continued claims increased slightly to 108,938 last week.
Many economists said they were disappointed that the number of first-time applications for jobless aid
and the total number of people receiving benefits remain so high.
And 15 states still aren’t reporting the number of self-employed and contract workers who have applied for aid, meaning that the data is incomplete.
“The big question is whether millions are still filing for unemployment due to separations that happened awhile ago or because of separations still happening today,” said Adam Ozimek, chief economist at Upwork.
Fewer people sought jobless aid last week in 47 states and in Washington, D.C., while the number rose in just California, Florida and Mississippi. The total number of people receiving aid fell in 37 states and in D.C. and increased in 13 states.
Applications for jobless benefits are falling in states that reopened their businesses early, such as Georgia and Texas, and are also declining in those that are still early in the reopening process, such as New York and Massachusetts.
With all states in the process of gradually reopening for business, more consumers are starting to return to restaurants, stores and hair salons.
That trend has boosted consumer spending from exceedingly low levels and has likely encouraged some companies to hire again.