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

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Give Mom the Gift of a Kitchen-Free Mother’s Day

DON'T MISS

Got An Idea for a Valley Documentary? CMAC’s Big Tell Contest Seeks Applicants

DON'T MISS

Fresno Unified Faces New Legal Claim Alleging Top Official Trapped Employee in Car

DON'T MISS

Clovis Police Arrest Two in Connection to Caleb Quick’s Murder

DON'T MISS

Elizabeth Smart Shares Harrowing Kidnap, Assault Experience with Fresno

DON'T MISS

US Military Ordered to Pull Books on Diversity, Gender Issues

DON'T MISS

Fresno County Authorities Seek Public’s Help in Huron Homicide

DON'T MISS

UN Agencies Warn That Israel’s Plans for Aid Distribution Will Endanger Lives in Gaza

DON'T MISS

Fresno Police Officer Arrested on Sexual Battery Charges

DON'T MISS

Mayor Baraka of Newark, New Jersey, Arrested at ICE Detention Center He Has Been Protesting

UP NEXT

Leo XIV’s Service to Poor Propelled Him to Papacy, Cardinals Say

UP NEXT

Nitrous Oxide Recreational Use Risks: Brain Damage, Death, and Easy Access

UP NEXT

Former Supreme Court Justice David Souter, a Republican Who Became a Liberal Darling, Dies at 85

UP NEXT

Pope Leo XIV Celebrates First Mass as Pope and Calls His Election Both a Cross and a Blessing

UP NEXT

Selma Bear Sighting Prompts Police, Wildlife Response

UP NEXT

Republicans’ Trust in Media Increases Following Trump’s Return to White House

UP NEXT

Rejoicing Peruvians See Pope Leo XIV as One of Their Own After His Many Years in Peru

UP NEXT

Shohei Ohtani Could Have Landed 15-Year Deal, Agent Says, but He Didn’t Want to Risk Skills Decline

UP NEXT

Joe Biden Blames Kamala Harris’ Loss on Sexism and Racism and Rejects Concerns About His Age

UP NEXT

Before Tariff Price Increases, Mark Cuban Suggests Stocking Up on These Items

Clovis Police Arrest Two in Connection to Caleb Quick’s Murder

14 hours ago

Elizabeth Smart Shares Harrowing Kidnap, Assault Experience with Fresno

15 hours ago

US Military Ordered to Pull Books on Diversity, Gender Issues

16 hours ago

Fresno County Authorities Seek Public’s Help in Huron Homicide

16 hours ago

UN Agencies Warn That Israel’s Plans for Aid Distribution Will Endanger Lives in Gaza

17 hours ago

Fresno Police Officer Arrested on Sexual Battery Charges

17 hours ago

Mayor Baraka of Newark, New Jersey, Arrested at ICE Detention Center He Has Been Protesting

17 hours ago

FDA Will Allow Three New Color Additives Made From Minerals, Algae and Flower Petals

18 hours ago

Pentagon Directs Military to Pull Library Books That Address Diversity, Anti-Racism, Gender Issues

18 hours ago

Fresno Pays the Most for Electricity. What Are Lawmakers Doing About It?

18 hours ago

Give Mom the Gift of a Kitchen-Free Mother’s Day

Nearly 4 in 10 moms say they’d prefer to go out to eat for Mother’s Day. Too often, even on their special day, moms end up manag...

9 minutes ago

9 minutes ago

Give Mom the Gift of a Kitchen-Free Mother’s Day

1 hour ago

Got An Idea for a Valley Documentary? CMAC’s Big Tell Contest Seeks Applicants

14 hours ago

Fresno Unified Faces New Legal Claim Alleging Top Official Trapped Employee in Car

14 hours ago

Clovis Police Arrest Two in Connection to Caleb Quick’s Murder

15 hours ago

Elizabeth Smart Shares Harrowing Kidnap, Assault Experience with Fresno

U.S. Secretary of Defense Pete Hegseth attends a cabinet meeting at the White House in Washington, D.C., U.S., April 10, 2025. REUTERS/Nathan Howard/File Photo
16 hours ago

US Military Ordered to Pull Books on Diversity, Gender Issues

Fresno County authorities are seeking the public’s help to find the suspect who killed Jesus Adrian Amador Jr., 22, of Huron, in a 2017 shooting. (Fresno County SO)
16 hours ago

Fresno County Authorities Seek Public’s Help in Huron Homicide

17 hours ago

UN Agencies Warn That Israel’s Plans for Aid Distribution Will Endanger Lives in Gaza

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

Search

Send this to a friend