US jobless claims hit 898K, most in 2 months
WASHINGTON — The number of Americans seeking unemployment benefits rose last week by the most in two months, to 898,000, a historically high number and evidence that layoffs remain a hindrance to the economy’s recovery from the pandemic recession.
Thursday’s report from the Labor Department coincides with other recent data that have signaled a slowdown in hiring. The economy is still roughly 10.7 million jobs short of recovering all the 22 million jobs that were lost when the pandemic struck in early spring.
Confirmed coronavirus cases have been rising again nationwide in the past month, likely causing more Americans to hold back from dining out, shopping and engaging in other commerce.
Across the country, applications for unemployment aid are rising while negotiations over a new stimulus package between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin remain mired in a stalemate.
The job search website Indeed said its job postings were unchanged last week, remaining about 17% below last year’s levels. Many employers still aren’t confident enough in their businesses or in their view of the economy to ramp up hiring. Job postings had rebounded steadily over the summer, but the gains have slowed in the past two months.
A report Thursday from Moody’s Analytics, a forecasting firm, and Morning Consult, a polling outfit, found that millions of people remain dependent on government aid. Roughly half of respondents in a survey last month said they were still using their $1,200 stimulus checks, which the government distributed in April and May, to pay for expenses. About 15% said they were relying on unemployment benefits.