Please ensure Javascript is enabled for purposes of website accessibility
US Unemployment Claims Jump to 965,000 as Virus Takes Toll
gvw_ap_news
By Associated Press
Published 4 years ago on
January 14, 2021

Share

WASHINGTON — The number of people seeking unemployment aid soared last week to 965,000, the most since late August and a sign that the resurgent virus has likely escalated layoffs.

The latest figures for jobless claims, issued Thursday by the Labor Department, remain at levels never seen until the virus struck. Before the pandemic, weekly applications typically numbered around 225,000. They spiked to nearly 7 million last spring, after nationwide shutdowns took effect. Applications declined over the summer but have been stuck above 700,000 since September.

The high pace of layoffs coincides with an economy that has faltered as consumers have avoided traveling, shopping and eating out in the face of soaring viral caseloads. More than 4,300 deaths were reported Tuesday, another record high. Shutdowns of restaurants, bars and other venues where people gather in California, New York and other states have likely forced up layoffs.

Some states and cities are resisting shutdowns, partly out of fear of the economic consequences but raising the risk of further infections. Minnesota allowed in-person dining to resume this week. Michigan is poised to do the same. Some bars and restaurants in Kansas City are extending their hours.

Economists say that once coronavirus vaccines are more widely distributed, a broader recovery should take hold in the second half of the year. The incoming Biden administration, along with a now fully Democratic-led House and Senate, is also expected to push more rescue aid and spending measures that could accelerate growth.

Yet many analysts also worry that with millions of Americans still unemployed and as many as one in six small companies going out of business, people who have been hurt most by the downturn won’t likely benefit from a recovery anytime soon.

“While prospects for the economy later in 2021 are upbeat, the labor market recovery has taken a step backward,” said Nancy Vanden Houten, an economist at Oxford Economics, “and we expect claims to remain elevated, with the risk that they rise from last week’s levels.”

Many People in the Arts and Entertainment Fields Have Lost Most or All of Their Incomes

Last week’s applications for aid might have been elevated in part because state employment offices had been closed over the holidays, requiring some jobless people to wait until last week to apply. The addition of a $300-a-week federal unemployment benefit, as part of a rescue aid package enacted late last month, may have also encouraged more people to apply, Vanden Houten said.

Many people in the arts and entertainment fields have lost most or all of their incomes as the coronavirus has shut down performance venues. They include Shelby Lewis, a classical trumpet player in Baton Rouge, Louisiana, who hasn’t performed since early March, when he played Bach with a Kansas City musical chamber.

Lewis, 48, is receiving $400 in weekly unemployment aid, including the new $300 federal benefit, and his wife is still working. He appreciates the federal aid, which freelance musicians like him haven’t been eligible for in the past.

Fearful, though, that many classical music groups will permanently close, Lewis is shifting his career back to photography and design, which he did for a decade before becoming a full-time musician.

“I think there is generally going to be a decline for small regional orchestras,” he said.

In addition to last week’s first-time applications for unemployment aid, the government said Thursday that 5.3 million Americans are continuing to receive state jobless benefits, up from 5.1 million in the previous week. It suggests that fewer people who are out of work are finding jobs.

About 11.6 million people received jobless aid from two federal programs in the week that ended Dec. 26, the latest period for which data is available. One of those programs provides extended benefits to people who have exhausted their state aid. The other supplies benefits to self-employed and contract workers.

The Figures Also Depicted a Sharply Uneven Job Market

Those two programs had expired near the end of December. They were belatedly renewed, through mid-March, in the $900 billion rescue aid package that Congress approved and President Donald Trump signed into law. That legislation also included $600 relief checks for most adults and a supplemental unemployment benefit payment of $300 a week. Congressional Democrats favor boosting the checks to $2,000 and extending federal aid beyond March, as does President-elect Joe Biden.

The U.S. job market’s weakness was made painfully clear in the December employment report that the government issued last week. Employers shed jobs for the first time since April as the pandemic tightened its grip on consumers and businesses.

The figures also depicted a sharply uneven job market: The losses last month were concentrated among restaurants, bars, hotels and entertainment venues — places that provide in-person services that some governments have restricted or that consumers are avoiding. Educational services, mostly colleges and universities, also cut workers in December. So did film and music studios.

Most other large industries, though, reported job gains. Many economists had expected last spring that job losses would spread to more industries. Though all sectors of the economy initially laid off workers, most of them have avoided deep job cuts. Manufacturing, construction, and professional services like engineering and architecture, for example, all added jobs in December.

At the same time, many companies seem reluctant to sharply ramp up hiring. A government report Tuesday showed that employers advertised fewer open jobs in November than in October. The decline, while small, was widespread across most industries. Even now, the nation has nearly 10 million fewer jobs than it did before the pandemic sent the economy into a deep recession nearly a year ago, having recovered just 56% of the jobs lost in the spring.

Those job losses have fallen disproportionately on women, who are more likely to work in the affected industries. They are also more likely to have quit jobs to stay home and care for children, many of whom are engaged in online schooling.

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

Hamas Ready to Release All Remaining Hostages for End to Gaza War, Hamas’ Gaza Chief Says

DON'T MISS

Ford Recalls More Than 148,000 Vehicles, NHTSA Says

DON'T MISS

Supreme Court to Hear Arguments on Trump Plan to End Birthright Citizenship

DON'T MISS

Fresno Man Arrested After Shots Fired Into Occupied Apartment

DON'T MISS

Next Phase of DOGE Is $5 Million Immigrant Visas

DON'T MISS

Republicans Weigh Tax Increase on Wealthy in Trump Agenda Bill

DON'T MISS

More Than 40% of Puerto Rico Customers Without Power After Island-Wide Blackout

DON'T MISS

Popular AIs Head-to-Head: OpenAI Beats DeepSeek on Sentence-Level Reasoning

DON'T MISS

Al Sharpton Calls Meeting With Target’s CEO Amid DEI Backlash ‘Very Constructive and Candid’

DON'T MISS

Former Pentagon Spokesman Tied to Online DEI Purge Was Asked to Resign

UP NEXT

Popular AIs Head-to-Head: OpenAI Beats DeepSeek on Sentence-Level Reasoning

UP NEXT

Al Sharpton Calls Meeting With Target’s CEO Amid DEI Backlash ‘Very Constructive and Candid’

UP NEXT

Former Pentagon Spokesman Tied to Online DEI Purge Was Asked to Resign

UP NEXT

The Kings Agree to Hire Scott Perry as General Manager, AP Source Says

UP NEXT

Shooting at Florida State Sends Students Running; Nearby Hospital Says It’s Treating People

UP NEXT

Actor Michelle Trachtenberg Died of Complications From Diabetes, Says NYC Medical Examiner

UP NEXT

Zoom Down for Thousands of Users, Downdetector Shows

UP NEXT

Puerto Rico Goes Dark After Widespread Power Plant Failure

UP NEXT

Harper and Realmuto Homer to Help Lead the Phillies to a Win Over the Giants

UP NEXT

Will Smith’s 3-Run Homer Sends Dodgers Over Major League-Worst Rockies

Fresno Man Arrested After Shots Fired Into Occupied Apartment

2 hours ago

Next Phase of DOGE Is $5 Million Immigrant Visas

2 hours ago

Republicans Weigh Tax Increase on Wealthy in Trump Agenda Bill

2 hours ago

More Than 40% of Puerto Rico Customers Without Power After Island-Wide Blackout

2 hours ago

Popular AIs Head-to-Head: OpenAI Beats DeepSeek on Sentence-Level Reasoning

3 hours ago

Al Sharpton Calls Meeting With Target’s CEO Amid DEI Backlash ‘Very Constructive and Candid’

3 hours ago

Former Pentagon Spokesman Tied to Online DEI Purge Was Asked to Resign

3 hours ago

Average US Rate on a 30-Year Mortgage Climbs to 6.83%, Highest Level Since Late February

3 hours ago

More Than 1,000 International Students Have Had Visas or Legal Status Revoked

3 hours ago

Protest Planned in Clovis Targets the Trump Administration

3 hours ago

Hamas Ready to Release All Remaining Hostages for End to Gaza War, Hamas’ Gaza Chief Says

CAIRO (Reuters) – Hamas’ Gaza chief said the group was ready to immediately negotiate a deal to swap all hostages for an agreed ...

58 minutes ago

Protesters, mainly Houthi supporters, stand near a screen displaying Senior Hamas official Khalil al-Hayya during a rally to show support to Lebanon's Hezbollah and Palestinians in the Gaza Strip, in Sanaa, Yemen October 18, 2024. (REUTERS File)
58 minutes ago

Hamas Ready to Release All Remaining Hostages for End to Gaza War, Hamas’ Gaza Chief Says

A Ford F-150 pickup truck is seen on the assembly line at Dearborn Truck Plant in Dearborn, Michigan, U.S. April 11, 2024. (REUTERS File)
1 hour ago

Ford Recalls More Than 148,000 Vehicles, NHTSA Says

2 hours ago

Supreme Court to Hear Arguments on Trump Plan to End Birthright Citizenship

A convicted felon was arrested Thursday, April 10, 2025, after allegedly firing multiple shots into a Fresno apartment following a dispute with a longtime friend, police said. (Fresno PD)
2 hours ago

Fresno Man Arrested After Shots Fired Into Occupied Apartment

Elon Musk walks down the steps to Air Force One with his son X Æ A-12 at Palm Beach International Airport in West Palm Beach, Fla., April 11, 2025. A new “gold card” visa reveals how Elon Musk’s group has seemingly expanded its functional power. (Tom Brenner/The New York Times)
2 hours ago

Next Phase of DOGE Is $5 Million Immigrant Visas

President Donald Trump speaks at the National Republican Congressional Committee (NRCC) dinner at the National Building Museum in Washington, Tuesday, April 8, 2025. (Pool via AP)
2 hours ago

Republicans Weigh Tax Increase on Wealthy in Trump Agenda Bill

People walk through a dark street after Puerto Rico was hit with a massive power outage where energy plants across the island unexpectedly shut down, in San Juan, Puerto Rico April 16, 2025. (REUTERS/Ricardo Arduengo)
2 hours ago

More Than 40% of Puerto Rico Customers Without Power After Island-Wide Blackout

3 hours ago

Popular AIs Head-to-Head: OpenAI Beats DeepSeek on Sentence-Level Reasoning

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

Search

Send this to a friend