Another 1.3 Milllion Americans filled initial claims for unemployment benefits last week, a modest dip signaling that the economy is struggling to recover from the pandemic-induced recession as cases surge around the country.
The figure marks the continuation of a plateau that has seen jobless claims hold reasonably steady over the last several weeks. The soft jobs numbers sent Dow Jones Industrial Average futures down 200 points.
It was the 17th straight week that unemployment claims have exceeded 1 million. The pre-pandemic record for weekly claims was just short of 700,000.
An additional 928,000 people applied for benefits through the Pandemic Unemployment Assistance program, a program set up by Congress this spring to aid out-of-work gig workers, self-employed people and others who would not otherwise qualify for unemployment benefits.
The number of people receiving unemployment benefits, however, declined, dropping 422,000 to 17.3 million. Enhanced unemployment benefits authorized by Congress, currently an additional $600 a week, are set to stop at the end of July.
Coronavirus cases and deaths have risen in the last several weeks, raising concerns about more business closures. California on Monday became the first state to significantly reimpose virus restrictions, once more closing essentially all indoor businesses. Other states have paused their phases reopening plans or closed certain establishments like bars.
“After an encouraging initial start to the recovery, the dramatic re-emergence of COVID-19 risks putting the economy back on its heels. With the paramount aim of saving lives, renewed restrictions placed on businesses also take a renewed toll taken on the economy,” Mark Hamrick, senior economic analyst at Bankrate, said in a statement. “Ultimately, the only treatment for what ails the economy is also what’s needed to overcome the virus.”
