Jobless filings ease a bit but remain sky- high

The number of Americans seeking unemployment benefits last week fell by 19,000 but remains historically high at 787,000 as a resurgent coronavirus maintains its grip on the U. S. economy.

Although at the lowest level in four weeks, the f igures released Thursday by the Labor Department are nearly four times as high as at this time in 2019, before the coronavirus struck. Employers continue to cut jobs as rising infections keep many people at home and state and local governments reimpose tighter restrictions on businesses and public activities.

Jobless claims were running around 225,000 a week before the pandemic struck with force in March, when weekly jobless claims surged to 6.9 million and sent the U. S. economy into a deep recession.

The total number of people receiving traditional unemployment benefits fell by 103,000, to 5.2 million, for the week that ended Dec. 19. That’s still far greater than the 1.7 million a year ago when the unemployment rate was hovering around a half- century low of 3.9%.

Unemployment claims peaked in May at 25.9 million.

The four- week average for claims, which smooths out weekly variations, rose last week to 836,750, an increase of 17,750 from the previous week.

Economists believe that the holidays, in addition to broad confusion over the status of a COVID- 19 relief package, suppressed applications for benefits last week, so the numbers may be worse than they appear.

Congress finally passed a $ 900- billion relief bill that would boost benefit payments and extend two unemployment assistance programs tied to job losses from the pandemic. However, President Trump called the measure a “disgrace” and refused to sign until Sunday.

Trump has continued to pressure Congress, through tweets, to boost the stimulus payments to individuals from the $ 600 in the bill to $ 2,000. The Democratic- controlled House quickly passed legislation to meet Trump’s demand, but the Republican- led Senate checked that effort.

Meanwhile, the government has begun sending out the smaller payments to millions of Americans. The $ 600 payment is going to individuals with incomes up to $ 75,000. Some Americans should begin seeing the stimulus payments this week. The payments are being automatically distributed with no action required for people who qualify.

Analysts believe the $ 900- billion package as it now stands will give the economy a boost but only as long as there are no major problems with the rollout of COVID- 19 vaccinations.

Last month, the Trump administration said it planned to have 20 million doses of the vaccine distributed by the end of the year, but according to data provided by the Centers for Disease Control, just over 11.4 million doses have been distributed and only 2.1 million people have received their first dose.

Trump def lected criticism about the pace of the vaccine program, saying that it’s “up to the States to distribute the vaccines.”

Andrew Stettner, senior fellow at the Century Foundation and an expert on unemployment benefits, said, “With fears of a new, more contagious strain of the virus spreading, the labor market badly needs a swifter implementation of the vaccine program in order to safely reopen the economy in 2021.”

Most economists expect the U. S. economy to rebound at some point this year, but that depends on the U. S. response to the coronavirus.