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

Fresno Unified Substitute Teacher Arrested in Online Child Exploitation Case

DON'T MISS

Investors Buy Fig Garden Village. How Much Did It Sell For?

DON'T MISS

Fresno County DA Wants Teens Tried as Adults in Caleb Quick Murder

DON'T MISS

State Farm Wins First-Ever Emergency Rate Hike in California

DON'T MISS

Work Permits Reinstated for UC Merced International Students, Anxiety Persists

DON'T MISS

Tatum to Miss Remainder of Playoffs After Achilles Tendon Surgery

DON'T MISS

Fresno Police Seek Public’s Help Identifying Shooting Suspect

DON'T MISS

MLB Reinstates Pete Rose and Shoeless Joe Jackson, Making Them Hall of Fame Eligible

DON'T MISS

Karbassi Running for Fresno County Elections Clerk, Says He Can ‘Do Better’

DON'T MISS

Global Eggs Completes Acquisition in US, Closes New Deal in Europe

UP NEXT

Cassie Testifies in Sean ‘Diddy’ Combs Sex Trafficking Trial. What to Know About the Star Witness

UP NEXT

Jayson Tatum Carried off Floor With Right Leg Injury and Celtics Star Will Have MRI

UP NEXT

Dallas Mavericks Win the NBA Draft Lottery, Eye Cooper Flagg for No. 1 Pick

UP NEXT

US Inflation Stable Before Expected Jump From Tariffs

UP NEXT

Trump Plans to Accept Luxury 747 From Qatar to Use as Air Force One

UP NEXT

‘The Studio’ Knows the Real Reason Movies Are Bad

UP NEXT

India and Pakistan Agree to a Ceasefire After Their Worst Military Escalation in Decades

UP NEXT

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

UP NEXT

Israeli Airstrikes Kill 23 in Gaza as Outcry Over Aid Blockade Grows

UP NEXT

Experts Call Kennedy’s Plan to find Autism’s Cause Unrealistic

State Farm Wins First-Ever Emergency Rate Hike in California

7 hours ago

Work Permits Reinstated for UC Merced International Students, Anxiety Persists

8 hours ago

Tatum to Miss Remainder of Playoffs After Achilles Tendon Surgery

8 hours ago

Fresno Police Seek Public’s Help Identifying Shooting Suspect

8 hours ago

MLB Reinstates Pete Rose and Shoeless Joe Jackson, Making Them Hall of Fame Eligible

8 hours ago

Karbassi Running for Fresno County Elections Clerk, Says He Can ‘Do Better’

8 hours ago

Global Eggs Completes Acquisition in US, Closes New Deal in Europe

10 hours ago

‘I Never Said He Called My Son the N-Word.’ Fresno Unified Trustee Thomas Tries to Erase Accusation Against Former Bullard Coach

11 hours ago

UnitedHealth Group CEO Steps Down as Company Lowers, Then Withdraws Financial Outlook for 2025

11 hours ago

FDA and RFK Jr. Aim to Remove Ingestible Fluoride Products Used to Protect Kids’ Teeth

11 hours ago

Fresno Unified Substitute Teacher Arrested in Online Child Exploitation Case

A 43-year-old Fresno man identified as a certified substitute teacher with the Fresno Unified School District has been arrested for allegedl...

3 hours ago

https://www.communitymedical.org/thecause?utm_source=Misfit+Digital&utm_medium=GVWire+Banner+Ads&utm_campaign=Branding+2025&utm_content=thecause
Carlos Gonzalez, 43, of Fresno, a substitute teacher at Fresno Unified School District has been arrested for allegedly attempting to meet a minor for sex after contacting the child through a messaging app, prompting authorities to urge potential victims to come forward. (Fresno County SO)
3 hours ago

Fresno Unified Substitute Teacher Arrested in Online Child Exploitation Case

6 hours ago

Investors Buy Fig Garden Village. How Much Did It Sell For?

Fresno clovis caleb quick
7 hours ago

Fresno County DA Wants Teens Tried as Adults in Caleb Quick Murder

7 hours ago

State Farm Wins First-Ever Emergency Rate Hike in California

8 hours ago

Work Permits Reinstated for UC Merced International Students, Anxiety Persists

8 hours ago

Tatum to Miss Remainder of Playoffs After Achilles Tendon Surgery

Fresno police are seeking help identifying a suspect caught on video after a shooting near First Street and Belmont Avenue left one person injured on Sunday. May 11, 2025. (Fresno PD)
8 hours ago

Fresno Police Seek Public’s Help Identifying Shooting Suspect

8 hours ago

MLB Reinstates Pete Rose and Shoeless Joe Jackson, Making Them Hall of Fame Eligible

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

Search

Send this to a friend