U.S. Jobless Claims Held Nearly Steady at 1.3M in July 11 Week -- Update
July 16 2020 - 9:18AM
Dow Jones News
By Eric Morath
New applications for unemployment benefits held nearly steady
last week after a period of larger declines, a sign an increased
number of Covid-19 cases in some states and related restrictions on
businesses is causing the labor market's healing to stall.
Initial unemployment claims fell by a seasonally adjusted 10,000
to 1.3 million for the week ended July 11, the Labor Department
reported Thursday.
That narrowly extends a trend of declines from a peak of 6.9
million in late March, when the coronavirus pandemic and mandated
business closures shut down swaths of the U.S. economy. Last week's
level was well above the highest week on record before this year,
which was 695,000 in 1982.
The number of Americans receiving unemployment benefits fell by
422,000 to 17.3 million for the week ended July 4, the lowest
reading since the week ended April 11. Those so-called continuing
claims are reported with a week lag.
The modest easing of the number of unemployment rolls suggests
new layoffs are being offset by hiring and recalling of workers.
Employers added a combined 7.5 million jobs in May and June after
shedding 21 million jobs in March and April, separate Labor
Department data showed.
Claims data were mixed across states. Applications for benefits
rose significantly in Florida, and also increased in Georgia and
California. They fell in Texas, New Jersey and Michigan.
In addition to regular state programs that cover about 90% of
U.S. workers, unemployment benefits have been expanded to those who
were previously ineligible for such aid, including self-employed
and gig-economy workers. Others who are now potentially eligible
include those who can't work because they're ill with Covid-19 or
caring for someone who is ill, those who don't have available
childcare and those who had a job offer rescinded due to the
pandemic.
Last week, 928,000 sought new benefits through that program,
which is accounted for separately from the regular unemployment
insurance program and not adjusted for seasonality. For the week
ended June 27, the latest available data, the number receiving
payments through the program rose by 406,000 to 14.3 million.
The number tapping benefits through the Pandemic Unemployment
Assistance program now nearly matches the number in the state
programs,according to the state data reported to the Labor
Department. However, economists caution that accounting for the new
program is inconsistent across states. A Labor Department
spokeswoman said Wednesday the department doesn't have a count of
individuals receiving the pandemic assistance.
The Century Foundation, a left-leaving think tank, estimates the
total number receiving unemployment benefits is about 25
million.
Write to Eric Morath at eric.morath@wsj.com
(END) Dow Jones Newswires
July 16, 2020 09:03 ET (13:03 GMT)
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