1.3 million people filed for first-time unemployment last week, marking 17 straight weeks of job losses as pandemic continues to wreak havoc with economy
Another 1.3 million Americans filed new claims for unemployment benefits last week, bringing the total number of people thrown out of work during the coronavirus pandemic to nearly 50 million.
The number of laid-off workers seeking unemployment benefits in the week ending July 11 remained stuck at 1.3 million for the second week in a row, the Labor Department announced on Thursday.
While the figures have steadily been dropping for 14 weeks, the latest data remains at an historically high level that indicates many companies are still cutting jobs as the COVID-19 outbreak intensifies.
The figure has now topped 1 million for 17 straight weeks. Before the pandemic, the record high for weekly unemployment applications was nearly 700,000.
The elevated level of applications for jobless aid is occurring as new confirmed cases of coronavirus are spiking across much of the Sunbelt, which has forced states to either pause or reverse their efforts to reopen their economies.
The number of laid-off workers seeking unemployment benefits in the week ending July 11 remained stuck at 1.3 million for the second week in a row, the Labor Department announced on Thursday
Job seekers exercise social distancing as they wait to be called into the Heartland Workforce Solutions office in Omaha, Nebraska on Wednesday. Nebraska reinstated job search requirements this week for most people claiming jobless benefits. Those unemployment insurance requirements were suspended in mid-March to help employees who had lost their jobs due to the coronavirus
Rising infections paralleled rising applications for aid in some states getting hit right now and fell in states with declining infections.
In Florida, claims doubled to 129,000 and rose nearly one-third to 136,000 in Georgia. In California, they increased 23,000 to nearly 288,000. Applications also rose in Arizona and South Carolina.
Applications fell in Texas, New Jersey and New York.
The total number of people who are receiving jobless benefits dropped 400,000 to 17.3 million, the latest jobs report said.
That suggests that some companies are continuing to rehire workers, which could offset some of the job losses reflected in the still-high level of claims.
An additional 928,000 people sought benefits last week under a separate program for self-employed and gig workers that has made them eligible for aid for the first time.
These figures aren't adjusted for seasonal variations so the government doesn't include them in the official count.
The resurgence of the virus and new business shutdowns in states such as Florida and California, along with signs that consumers are pulling back from eating out and other activities, has intensified fears that the economic recovery is losing steam.
The government's employment report for June showed a solid gain of 4.8 million jobs and an unemployment rate that fell to 11.1% from 13.3%.
But economists increasingly doubt that such a pace can be sustained. The number of employees working at small businesses declined last week, particularly in states with worsening viral outbreaks, according to data from Homebase, a company that makes scheduling and work-tracking software.
'The risk of a dip lower in the economy has increased as more states adopt policies to combat the virus spread,' economists at Bank of America said in research note. 'Until the country manages to get the virus under control, the recovery is likely to be one of fits and starts.'
Companies continue to lay off people. American Airlines warned its workers Wednesday that it may have to cut up to 25,000 jobs in October because of sharply reduced air travel. Airlines are barred from layoffs until then as a condition of federal aid they have received. United Airlines has already told 36,000 workers they may lose their jobs.
Air traffic began to slowly rebound in mid-April, but like other parts of the economy, the improvement plateaued in July as the viral outbreak worsens.
The elevated level of applications for jobless aid is occurring as new confirmed cases of coronavirus are spiking across much of the Sunbelt, which has forced states to either pause or reverse their efforts to reopen their economies
