The Atlanta Journal-Constitution
751,000 seek jobless benefits inU. S.
Dip in number seeking unemployment aid belies historic highs.
WASHINGTON — The number of Americans seeking unemployment benefits fell slightly last week to 751,000, a still historically high level that shows that many employers keep cutting jobs in the face of the accelerating pandemic.
What’shappened
A surge in viral cases and Congress’ failure so far to provide more aid for struggling individuals and businesses are threatening to deepen Americans’ economic pain. Eight months after the pandemic flattened the economy, weekly jobless claims still point to a streamof layoffs. Before the virus struck in March, the weekly figurehad remained below300,000 for more than five straight years.
Thursday’s report from the Labor Department said the number of people who are continuing to receive traditional unemployment benefits declined to 7.3 million. That figure shows that some of the unemployed are being recalled to their old jobs or are finding new ones. But it also indicates that many jobless Americans have used up their state unemployment aid — which typically expires after six months — and have transitioned to a federal extended benefits program that lasts an additional 13weeks.
‘ The economy is on its own against the virus. Accelerating cases are an ever- present threat during winter, and a virus surge means economic uncertainty for businesses. Until that uncertainty is eliminated, the labor market will struggle to return to what it used to be.’ AnnElizabeth Konkel Economist at Indeed
Whyit’s happening
The job market has been under pressure since the virus paralyzed the economy and has regained barely half the 22 million jobs that were lost to the pandemic in early spring. The pace of rehiring has steadily weakened— from 4.8 million added jobs in June to 661,000 in September. Today, when the government issues the
October jobs report, economists foresee a further slowdown — to 580,000 added jobs— accordingto a survey by the data firm FactSet.
Lastweek, nearly 363,000people applied for jobless aid under a new program that extended eligibility for the first time to self-employed and gig workers, up slightly from359,000 the previousweek. That figure isn’t adjusted for seasonal trends, so it’s reported separately.
All told, the Labor Department said 21.5 million people are receiving some form of unemployment benefits, though the figure may be inflated by double- counting by states.
The financial aid package that Congress enacted in the spring included a $ 600- a- week federal jobless benefit and $ 1,200 checks thatwent tomost adults, in addition to assistance for small businesses. All that money has run
out. Without additional federal aid, millions of unemployed Americans likely will lose all their jobless benefits incoming weeks and months, probably forcing them to scale back their spending. And many small companies could go out of business.
In the meantime, new confirmed viral cases in the United States on Wednesday reached an all- time high of more than 100,000, in a sign of theworsening crisis that lies ahead for the winner of this week’s presidential election. By contrast, just two months ago, according to Johns Hopkins University, the seven-day rolling average for confirmed daily new cases was 34,000.
Whatmightbenext?
As temperatures fall, restaurants and bars will serve fewer customers outdoors. And many
consumers may stay home to avoid infection. Dwindling business could force employers to slashmore jobs during the winter.
The data firm Womply found that more businesses are shuttering in the face of a COVID19 resurgence and a potentially deteriorating economy: 21% of small businesses were closed as November began, it says, up from 20% in October, 19% in September and 17% in August. And sales growth is slowing at the companies that are open.
“The economy is on its own against the virus,” said AnnElizabeth Konkel, an economist at Indeed. “Accelerating cases are an ever- present threat during winter, and a virus surge means economic uncertainty for businesses. Until that uncertainty is eliminated, the labor market will struggle to return to what it used to be.”