Please ensure Javascript is enabled for purposes of website accessibility
Jobless Claims Up for 2nd Straight Week as Virus Worsens
gvw_ap_news
By Associated Press
Published 4 years ago on
November 25, 2020

Share

WASHINGTON — The number of Americans applying for unemployment benefits rose last week for a second straight week to 778,000, evidence that the U.S. economy and job market remain under strain as coronavirus cases surge and colder weather heighten the risks.

The Labor Department’s report Wednesday said that jobless claims climbed from 748,000 the week before. Before the virus struck hard in mid-March, weekly claims typically amounted to only about 225,000. They shot up to 6.9 million during March before dropping, yet they remain historically high more than eight months later, with many businesses unable to fully reopen.

The spike in virus cases is intensifying pressure on companies and individuals, with fear growing that the economy could suffer a “double-dip” recession as states and cities reimpose restrictions on businesses.

“With infections continuing to rise at an elevated pace and curbs on business operations widening, layoffs are likely to pick up over coming weeks,″ said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “Even as job growth is continuing, the labor market remains under stress and far from complete recovery.″

The total number of people who are continuing to receive traditional state unemployment benefits dropped to 6.1 million from 6.4 million the previous week. That figure has been declining for months. It shows that more Americans are finding jobs and no longer receiving unemployment aid. But it also indicates that many jobless people have used up their state unemployment aid — which typically expires after six months.

More Americans are collecting benefits under programs that were set up to cushion the economic pain from the pandemic. For the week of Nov. 7, the number of people collecting benefits under the Pandemic Unemployment Assistance program — which offers coverage to gig workers and others who don’t qualify for traditional aid — rose by 466,000 to 9.1 million.

And the number of people receiving aid under the Pandemic Emergency Unemployment Compensation program — which offers 13 weeks of federal benefits to those who have exhausted state jobless aid — rose by 132,000 to 4.5 million.

All told, nearly 20.5 million people are receiving some type of unemployment aid. (Figures for the two pandemic-related programs aren’t adjusted for seasonal variations.)

The intensifying pandemic is threatening to accelerate the pace of layoffs as more states and localities limit public gatherings and mandate fewer hours and smaller capacities for restaurants, bars and other businesses. Regardless what governments do, many Americans are likely to stay home — and away from local businesses — until they feel safe again.

The Heart of the Problem Is an Untamed Virus

The Conference Board, a business research group, reported Tuesday that consumer confidence weakened in November, pulled down by lowered expectations for the next six months.

The data firm Womply says that 21% of small businesses were shuttered at the start of this month, reflecting a steady increase from June’s 16% rate. Consumer spending at local businesses is down 27% this month from a year ago, marking a deterioration from a 20% year-over-year drop in October, Womply found.

The heart of the problem is an untamed virus: The number of confirmed infections in the United States has shot up to more than 170,000 a day, from fewer than 35,000 in early September. The arrival of cold weather in much of the country could further worsen the health crisis.

Meanwhile, another economic threat looms: The impending expiration of the two supplemental federal unemployment programs the day after Christmas could end benefits completely for 9.1 million jobless people. Congress has failed for months to agree on any new stimulus aid for jobless individuals and struggling businesses after the expiration of a multi-trillion dollar rescue package it enacted in March.

Most economists warn that without more government aid, hardships will deepen for individuals, small companies and localities and states, which will likely have to slash services and jobs.

The expiration of benefits will make it harder for the unemployed to make rent payments, afford food or keep up with utility bills. Most economists agree that because unemployed people tend to quickly spend their benefits, such aid is effective in boosting the economy.

When the viral outbreak struck in early spring, it flattened the economy with stunning speed. Employers slashed 22 million jobs in March and April, sending the unemployment rate rocketing to 14.7%, the highest rate since the Great Depression.

Since then, the economy has regained more than 12 million jobs. Yet the nation still has about 10 million fewer jobs than it did before the pandemic erupted.

RELATED TOPICS:

DON'T MISS

As LA Burns, Corruption Probe Leaves State Senate’s Insurance Committee Chair Vacant

DON'T MISS

Texas Man Charged With Stalking WNBA Star Caitlin Clark

DON'T MISS

Newsom Blocks Early Release for Merced Man Who Murdered Teacher

DON'T MISS

Gov. Newsom Sparks Outrage as Donation Link to LA Fire Relief Connects to Super PAC

DON'T MISS

Rep. Costa Says Immigration Sweeps Are Over, but Border Patrol Targets Fresno

DON'T MISS

Fresno’s Fentanyl ‘King’ Gets 23 Years in Federal Prison

DON'T MISS

What Are Fresno Leaders Saying About Anti-Deportation Protests?

DON'T MISS

IRS Issues Stimulus Payments Again. Who Is Getting Them?

DON'T MISS

Mike McCarthy Won’t Return as Dallas Cowboys Coach: AP Source

DON'T MISS

As Crazy as It Sounds, Trump’s Approach to Foreign Policy Could Work

UP NEXT

Meathead Movers Fill Trucks with Donations for LA Fire Victims. Fresno Can Help

UP NEXT

Google to Track Every Device Starting February 16

UP NEXT

TikTok’s Fate Arrives at Supreme Court in Collision of Free Speech and National Security

UP NEXT

Riverside County Sheriff’s Deputy Dies in On-Duty Traffic Accident

UP NEXT

Italian Journalist Freed From Detention in Iran, Returns Home

UP NEXT

Washington Post Lays Off 4% of Its Workforce

UP NEXT

Jimmy Carter Will Be Honored in Washington, a City Where He Remained an Outsider

UP NEXT

Even MAGA Needs Immigrants, It Seems

UP NEXT

First US Bird Flu Death Is Announced in Louisiana

UP NEXT

The Jan. 6 Rioters, 4 Years Later

Gov. Newsom Sparks Outrage as Donation Link to LA Fire Relief Connects to Super PAC

4 hours ago

Rep. Costa Says Immigration Sweeps Are Over, but Border Patrol Targets Fresno

4 hours ago

Fresno’s Fentanyl ‘King’ Gets 23 Years in Federal Prison

6 hours ago

What Are Fresno Leaders Saying About Anti-Deportation Protests?

6 hours ago

IRS Issues Stimulus Payments Again. Who Is Getting Them?

6 hours ago

Mike McCarthy Won’t Return as Dallas Cowboys Coach: AP Source

7 hours ago

As Crazy as It Sounds, Trump’s Approach to Foreign Policy Could Work

7 hours ago

Fresno State Lands Minnesota Defensive Tackle and De La Salle Linebacker

7 hours ago

DeSantis Calls Special Session To Implement Trump’s Immigration Policies

7 hours ago

Mayor Jerry Dyer Shares What Fresno Can Expect in 2025

8 hours ago

As LA Burns, Corruption Probe Leaves State Senate’s Insurance Committee Chair Vacant

As fires rage through Southern California and exacerbate the state’s insurance crisis, the California Senate has no one in charge of its Ins...

2 hours ago

2 hours ago

As LA Burns, Corruption Probe Leaves State Senate’s Insurance Committee Chair Vacant

3 hours ago

Texas Man Charged With Stalking WNBA Star Caitlin Clark

2010 Merced Murder Victim Diane Lynn Reid Romero
3 hours ago

Newsom Blocks Early Release for Merced Man Who Murdered Teacher

Photo of Gov. Gavin Newsom
4 hours ago

Gov. Newsom Sparks Outrage as Donation Link to LA Fire Relief Connects to Super PAC

4 hours ago

Rep. Costa Says Immigration Sweeps Are Over, but Border Patrol Targets Fresno

Fentanyl M30 Pills
6 hours ago

Fresno’s Fentanyl ‘King’ Gets 23 Years in Federal Prison

6 hours ago

What Are Fresno Leaders Saying About Anti-Deportation Protests?

Photo of IRS building
6 hours ago

IRS Issues Stimulus Payments Again. Who Is Getting Them?

Help continue the work that gets you the news that matters most.

Search

Send this to a friend