The Atlanta Journal-Constitution
■ U.S, jobless claims dip to 709,000, but analysts remain wary coronavirus spik
Lowest figure since March shows job market may be slowly healing.
WASHINGTON — The number of people seeking U.S. unemployment benefits fell last week to 709,000, a still-high level but the lowest figure since March and a further sign the job market might be slowly healing.
Yet the improvement will be put at risk by the sharp resurgence in confirmed viral infections to an alltime high well above 120,000 a day. Cases are rising in 49 states, and deaths are increasing in 39. The nation has now recorded 240,000 virus-related deaths and 10.3 million confirmed infections.
As colder weather sets in and fear of the virus escalates, consumers may turn more cautious about traveling, shopping, dining out and visiting gyms, barbershops and retailers. Companies in many sectors could cut jobs or workers’ hours. In recent days, the virus’s resurgence has triggered tighter restrictions on businesses, mostly restaurants and bars, in a range of states, including Texas, New York, Maryland and Oregon.
“The risk may be for more layoffs as coronavirus cases surge and some states impose restrictions on activity,” said Nancy Vanden Houten, an economist at the forecasting firm Oxford Economics.
Last week’s count of new applications for jobless benefits was down from 757,000 the previous week, the Labor Department said Thursday. The still-high figure shows that eight months after the pandemic flattened the economy, many employers are still slashing jobs.
So far, the spike in viral cases hasn’t triggered a wave of new layoffs. The number of applications for unemployment insurance fell last week in 29 states, including such hot spots as Wisconsin and Illinois. At the same time, the figure jumped by more than 5,000 in California, 10,000 in Washington state and 2,800 in Massachusetts.
The number of people who are continuing to receive traditional unemployment benefits fell to 6.8 million, the government said, from 7.2 million. That suggests that more Americans are finding jobs and no longer receiving unemployment aid. But it also indicates that many jobless people have used up their state unemployment aid — which typically expires after six months — and have transitioned to a federal extended benefits program that lasts 13 more weeks.
The number of people on federal and state extended benefits rose 130,000 in the week that ended Oct. 24, the latest period for which data is available, to 4.7 million.
The viral outbreak is threatening to upend the improvement in the job market in recent months. The unemployment rate plunged a full percentage point in October to 6.9% while employers added a solid 640,000 new jobs. Yet weekly applications for jobless aid remain at historically high levels. The applications likely include some people who lost jobs weeks ago but who have had to wait for states to process their claims.