Weekly claims 2.1M as layoffs go on

Aid applications fall; consumer spending up

WASHINGTON — Roughly

2.1 million people applied for U.S. unemployment benefits last week, a sign that companies are still slashing jobs in the face of a deep recession even as more businesses reopen and rehire some laid-off employees.

About 41 million people have applied for aid since the virus outbreak intensified in March, but not all of them are still unemployed.

The Labor Department’s report Thursday includes a count of all the people now receiving unemployment aid: 21 million. That is a rough measure of the number of unemployed Americans.

In Nevada, the agency reported 18,102 new unemployment claims, only 265 more claims than last week.

The national jobless rate was

14.7 percent in April, the highest since the Great Depression, and many economists expect it will near 20 percent in May.

States are restarting their economies by letting some businesses — from gyms, retail shops and restaurants to hair and nail salons — reopen with some restrictions. As some of these employers, including automakers, have recalled part of their laid-off employees, the number of people receiving unemployment benefits has fallen.

Claims fall for eighth week

First-time applications for unemployment aid, though still high by historical standards, have fallen for eight straight weeks.

With those who applied last week, an additional 1.2 million applied under a new program for selfemployed and gig workers, who are eligible for jobless aid for the first

time. The figures aren’t adjusted for seasonal variations, so the government doesn’t include them in the overall data.

Analysts are monitoring incoming economic data to gauge how consumers are responding as many retail establishments reopen.

Jobs won’t return in any significant way if Americans remain slow to resume spending at their previous levels.

Data from Chase Bank credit and debit cards shows that consumers have slowly increased their spending since the government distributed stimulus checks in mid-april. Consumer spending had plunged 40 percent in March compared with a year earlier but

has rebounded to 20 percent below year-ago levels.

Most of that increase has occurred in online shopping, which has recovered to pre-virus levels after having tumbled about 20 percent. But offline spending, which makes up most consumer spending, is still down 35 percent from a year ago, according to Chase, after having plummeted 50 percent at its lowest point.