US Weekly Jobless Claims Fall; But a Record 32.9 Million on Unemployment Benefits
New applications for U.S. jobless benefits fell last week, but a record 32.9 million Americans were collecting unemployment checks in the third week of June, suggesting the labor market was struggling to claw out of the…
New applications for U.S. jobless benefits fell last week, but a record 32.9 million Americans were collecting unemployment checks in the third week of June, suggesting the labor market was struggling to claw out of the COVID-19 pandemic slump.
Economists cautioned against reading too much into the drop in weekly jobless claims reported by the Labor Department on Thursday, noting that the period included the July 4 Independence Day. Claims data are volatile around holidays.
Large parts of the country, including densely populated states like Florida, Texas and California, are dealing with record spikes of new COVID-19 cases, which have forced a scaling back or pausing of reopenings and sent some workers home again.
“Jobless claims may have been held down due to the holiday, but don’t be fooled, the Economy’s troubles aren’t over yet, not by a long shot,” said Chris Rupkey, chief economist at MUFG in New York. “The total number out of work and receiving benefits is the worst yet in this recession.”
Initial claims for state unemployment benefits dropped 99,000 to a seasonally adjusted 1.314 million for the week ended July 4. That was the 14th straight weekly decline.
Economists polled by Reuters had forecast 1.375 million applications in the latest week. Claims peaked at a historic 6.867 million in late March. They have been gradually falling, though they remain roughly double their highest point during the 2007-09 Great Recession. Including a program funded by the government, 2.3 million people filed claims last week.
U.S. stock index futures edged higher. The dollar was steady against a basket of currencies. U.S. Treasury prices rose.
RISING CORONAVIRUS CASES
The number of people receiving benefits after an initial week of aid dipped 698,000 to 18.062 million in the week ending June 27. These so-called continued claims, which are reported with a one-week lag, topped out at a record 24.912 million in early May.