Jobless claims slip, although still high

The number of WASHINGTON —

Americans seeking unemployment aid fell slightly last week to 787,000, ahistoricallyhighnumber that points to a weak job market held back by the viral pandemic.

Thursday’sfigurefromtheLabor Department, a slight decline from the previous week, shows that even with the pandemic recession in its 10th month, many businesses are still laying offworkers. Before the recession, weekly jobless claims typically numbered around 225,000.

Therenewedsurgeinviruscases has caused millions of consumers to avoid eating out, shopping and traveling. Andstateshaveimposed new restrictions on restaurants, bars and other businesses. Economists at TD Securities estimate that more than half of states are now restricting gatherings to 10 people or fewer, up fromroughly a quarter in September.

Those restrictions are forcing many companies, having run through much of their cash reserves, to cut more jobs.

“Unemployment remains extremely high, although not nearlyasbadasitwasinthespring, and the pace of improvement in the job market has slowed dramatically fromthe summer,” said GusFaucher, an economist atPNC Financial. “Jobgrowth should pick up in the spring as vaccine distribution continues, betterweather allows for more outdoor activities and states gradually loosen restrictions.”

Many economists say they’re hopeful that once the coronavirus vaccines are morewidely distributed, the economy will achieve a broader recovery in the second half of the year.