Job Picture Worsens: Millions More File For Unemployment, In Reversal

Signs are displayed exterior the Washington, D.C., Department of Employment Services. New claims for unemployment advantages across the nation rose for the primary time in 4 months. Saul Loeb/AFP through Getty Images disguise caption

toggle caption

Saul Loeb/AFP through Getty Images

Signs are displayed exterior the Washington, D.C., Department of Employment Services. New claims for unemployment advantages across the nation rose for the primary time in 4 months.

Saul Loeb/AFP through Getty Images

Updated at 11:34 a.m. ET

New claims for unemployment advantages rose final week for the primary time since March, as states started reimposing lockdown restrictions in an effort to reverse a surge of coronavirus instances.

More than 1.four million new claims had been filed through the week ending July 18, a rise of greater than 100,000 over the week earlier than, the Labor Department reported Thursday.

In addition, claims for Pandemic Unemployment Assistance, which helps people who find themselves self-employed or who do not qualify for normal advantages, went up almost 20,000 to about 975,000.

The variety of new claims had been steadily ticking downward since March, when almost 7 million individuals filed for unemployment insurance coverage in a single week. Last week’s numbers marked the primary reversal of that pattern.

The will increase are proof that the labor market is deteriorating as companies across the nation shut their doorways once more in response to an intensified coronavirus pandemic.

“The labor market remains in a precarious place, as Covid-19 cases surge in some parts of the country and fresh lock-down measures are adopted in response,” says Nancy Vanden Houten, lead economist at Oxford Economics.

Nearly four million instances of the virus have been reported within the U.S., with dozens of states reporting an uptick in instances — particularly in Sunbelt states corresponding to Arizona, Florida and Texas — and a few states have begun reimposing lockdowns.

California had been slowly permitting companies to reopen, solely to reverse itself final week. Malls, eating places and hair salons within the largest counties had been ordered to cease serving clients indoors as instances spiked.

The upticks in filings come as Congress debates whether or not to increase federal unemployment insurance coverage associated to the pandemic, which expires in days.

“The combination of the resurgence of COVID-19, especially across the Sun Belt, bankruptcies, and secondary layoffs finally stopped the decline,” mentioned Robert Frick, company economist at Navy Federal Credit Union.

The 109,000 improve in first-time common claims got here whilst continued claims dropped by 1.1 million, to 16.2 million.

Leave a Comment

Item added to cart.
0 items - $0.00