Please ensure Javascript is enabled for purposes of website accessibility
US Jobless Claims Reach a Pandemic Low as Economy Recovers
gvw_ap_news
By Associated Press
Published 3 years ago on
September 9, 2021

Share

WASHINGTON — The number of Americans seeking unemployment benefits fell last week to 310,000, a pandemic low and a sign that the surge in COVID-19 cases caused by the delta variant has yet to lead to widespread layoffs.

Thursday’s report from the Labor Department showed that jobless claims dropped from a revised total of 345,000 the week before. And at their current pace, weekly applications for benefits are edging toward their pre-pandemic figure of roughly 225,000.

But the spread of the delta variant this summer has put renewed pressure on the economy and the job market. On Wednesday, the Federal Reserve reported that U.S. economic activity “downshifted” in July and August, in part because of a pullback in dining out, travel and tourism related to concerns about the delta variant.

Economic Rebound Has Slowed with Increased Infection Rates

Still, the ongoing drop in applications for unemployment aid — six declines in the past seven weeks — indicates that most companies are holding onto their workers despite the slowdown. That trend should help sustain the economic rebound through the current wave of infections.

The pace of hiring, though, has weakened — at least for now. Last week, the government reported that hiring slowed dramatically in August, with employers adding just 235,000 jobs after having added roughly a million in both June and July. Hiring plummeted in industries that require face-to-face contact with the public, notably restaurants, hotels and retail. Still, some jobs were added in other areas, and the unemployment rate actually dropped to 5.2% from 5.4%.

“While the August jobs report showed employers may have hit the pause button on hiring amid renewed concerns about the pandemic, the claims data suggest a reluctance to lay off workers amid a record number of job openings,” said Nancy Vanden Houten, an economist at the consulting firm Oxford Economics.

Unemployment Benefits End for Over 8 Million People

The steady fall in weekly applications for unemployment benefits coincides with a scaling-back of aid for jobless Americans. This week, more than 8 million people lost all their unemployment benefits with the expiration of two federal programs that covered gig workers and people who have been jobless for more than six months. Those emergency programs were created in March 2020, when the pandemic first tore through the economy.

That cutoff isn’t yet reflected in the weekly jobless claims report. The report’s data on the emergency programs is delayed by two weeks. As of Aug. 21, 8.8 million people were receiving benefits from these two programs.

An additional 2.6 million people were receiving regular state unemployment aid. These recipients have just lost a $300-a-week federal unemployment supplement, which also expired this week.

Those cutoffs could also be a reason why applications for jobless aid are declining, said Eliza Forsythe, an economist at the University of Illinois at Urbana-Champaign: Many of the unemployed may now believe they aren’t eligible for aid.

Cut-offs and Virus Resurgence May Lead to Financial Hardship

Some business owners had complained that the federal supplement made it harder to fill open jobs. Those pleas led governors in about 25 states to cancel the $300 payment early and to shut off the two emergency programs in most of those states as well. But academic research has found that so far, the early cut-offs in jobless benefits have led to only a small increase in hiring in those states.

Many economists express concern that the cut-off will lead to financial hardship because the resurgence of the pandemic will make it harder for some of the unemployed to find work. After previous recessions, emergency expansions of jobless aid ended at a time when far fewer people were still receiving benefits.

RELATED TOPICS:

DON'T MISS

$11M State Grant Will Help Fresno’s Emergency Shelter Beds, Mental Health Services

DON'T MISS

City Council Finally Gives New NW Fresno Costco a Green Light

DON'T MISS

Prop 47 Reformers Send Nearly a Million Signatures to Sacramento

DON'T MISS

BTC Scammy Scams, Impact of Blockchain on Global Markets: Crypto The WonderDog Show

DON'T MISS

US Vetoes Full United Nations Membership for Palestine

DON'T MISS

Barbara Corcoran: 1% Interest Rate Drop Will Send Housing Prices ‘Through the Roof’

DON'T MISS

Cavinder Twins Are Returning to Miami for Their Last Season

DON'T MISS

California Sets Long-Awaited Drinking Water Limit for ‘Erin Brockovich’ Contaminant

DON'T MISS

Savannah Bananas Dominate Social Media, Sell Out Stadiums Nationwide Including Fresno

DON'T MISS

Biden is Off on Details of His Uncle’s WWII Death as He Calls Trump Unfit to Lead the Military

UP NEXT

Barbara Corcoran: 1% Interest Rate Drop Will Send Housing Prices ‘Through the Roof’

UP NEXT

Coalition: CA Lawmakers Need to Roll Back Proposed ‘Utility Tax’

UP NEXT

Wall Street’s Mixed Trading Day

UP NEXT

Fresno Coin Gallery Owner Reveals Why Gold & Silver Are Hot Investments

UP NEXT

Biden’s Embrace of Trump’s Tariffs Could Spell Trouble for His Reelection: Fareed Zakaria

UP NEXT

How California Legislators Got More Than $1.4 Million in Travel and Gifts in 2023

UP NEXT

Will China Flood the Globe With EVs, Green Tech? Latest on US-China Trade Fight

UP NEXT

JPMorgan’s Dimon Warns Inflation, Political Polarization, Wars Creating Risks Not Seen Since WWII

UP NEXT

CA Labor Priorities and Business ‘Job Killers’ on a Collision Course

UP NEXT

Robust US Job Growth Indicates Continued Economic Strength

BTC Scammy Scams, Impact of Blockchain on Global Markets: Crypto The WonderDog Show

8 hours ago

US Vetoes Full United Nations Membership for Palestine

8 hours ago

Barbara Corcoran: 1% Interest Rate Drop Will Send Housing Prices ‘Through the Roof’

9 hours ago

Cavinder Twins Are Returning to Miami for Their Last Season

10 hours ago

California Sets Long-Awaited Drinking Water Limit for ‘Erin Brockovich’ Contaminant

10 hours ago

Savannah Bananas Dominate Social Media, Sell Out Stadiums Nationwide Including Fresno

12 hours ago

Biden is Off on Details of His Uncle’s WWII Death as He Calls Trump Unfit to Lead the Military

13 hours ago

Big Names in Rap, Christian Music, and Comedy Headline Must-See Weekend Entertainment

13 hours ago

US and UK Issue New Sanctions on Iran in Response to Tehran’s Weekend Attack on Israel

13 hours ago

Will State AG Rob Bonta Jump Into 2026 Race for CA Governor?

13 hours ago

$11M State Grant Will Help Fresno’s Emergency Shelter Beds, Mental Health Services

Fresno got a $10.9 million piece of California grant money to shelter people living in encampments. The money from California’s $192 m...

6 hours ago

6 hours ago

$11M State Grant Will Help Fresno’s Emergency Shelter Beds, Mental Health Services

7 hours ago

City Council Finally Gives New NW Fresno Costco a Green Light

7 hours ago

Prop 47 Reformers Send Nearly a Million Signatures to Sacramento

Crypto the WonderDog Show
8 hours ago

BTC Scammy Scams, Impact of Blockchain on Global Markets: Crypto The WonderDog Show

8 hours ago

US Vetoes Full United Nations Membership for Palestine

9 hours ago

Barbara Corcoran: 1% Interest Rate Drop Will Send Housing Prices ‘Through the Roof’

10 hours ago

Cavinder Twins Are Returning to Miami for Their Last Season

10 hours ago

California Sets Long-Awaited Drinking Water Limit for ‘Erin Brockovich’ Contaminant

MENU

CONNECT WITH US

Search

Send this to a friend