Please ensure Javascript is enabled for purposes of website accessibility

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

4 hours ago

‘Reservoir Dogs’ and ‘Kill Bill’ Actor Michael Madsen Dies at 67

5 hours ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

5 hours ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

6 hours ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

9 hours ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

10 hours ago

Nvidia Set to Become the World’s Most Valuable Company in History

10 hours ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

10 hours ago
US Jobless Claims Decline to a Still-High 900,000
gvw_ap_news
By Associated Press
Published 4 years ago on
January 21, 2021

Share

WASHINGTON — The number of Americans seeking unemployment benefits fell slightly last week to 900,000, still a historically high level that points to ongoing job cuts in a raging pandemic.

The Labor Department’s report Thursday underscored that President Joe Biden has inherited an economy that faltered this winter as virus cases spiked, cold weather restricted dining and federal rescue aid expired. The government said 5.1 million Americans are continuing to receive state jobless benefits, down from 5.2 million in the previous week. That suggests that while some of the unemployed are finding jobs, others are likely using up their state benefits and transitioning to separate extended-benefit programs.

More than 10 million people are receiving aid from those extended programs, which now offer up to 50 weeks of benefits, or from a new program that provides benefits to contractors and the self-employed. All told, nearly 16 million people were on unemployment in the week that ended Jan. 2, the latest period for which data is available.

“Unemployment claims continue to show a job market unable to progress further as long as COVID-19 remains in the driver’s seat,” said Daniel Zhao, senior economist at Glassdoor. “While the vaccine offers a light at the end of the tunnel, we’re still far away from a complete reopening of the economy that could drive rehiring and stem further layoffs.”

New viral infections have begun to slow after months of relentless increases, though they remain high and are averaging about 200,000 a day. The number of deaths in the United States from the pandemic that erupted 10 months ago has surpassed 400,000.

Economists say one factor that has likely increased jobless claims in the past two weeks is a government financial aid package that was signed into law in late December. Among other things, it provided a $300-a-week federal unemployment benefit on top of regular state jobless aid. The new benefit, which runs through mid-March, may be encouraging more Americans to apply for aid.

For Now, the Economy Is Losing Ground

Once vaccines become more widely distributed, economists expect growth to accelerate in the second half of the year as Americans unleash pent-up demand for travel, dining out and visiting movie theaters and concert halls. Such spending should, in theory, boost hiring and start to regain the nearly 10 million jobs lost to the pandemic.

But for now, the economy is losing ground. Retail sales have fallen for three straight months. Restrictions on restaurants, bars and some stores, along with a reluctance of most Americans to shop, travel and eat out, have led to sharp spending cutbacks. Revenue at restaurants and bars plunged 21% in 2020.

The loss of so many jobs has meant hardship for millions of American households. In December, employers cut 140,000 positions, the first loss since April and the sixth straight month in which hiring has weakened. The unemployment rate remained stuck at a still-high 6.7%.

Yet there are signs that the $900 billion federal aid package enacted late last month may have begun to cushion the damage, in large part thanks to $600 checks being sent to most adults. The government began distributing the payments at the end of last month.

Those payments have likely helped drive an increase in spending on debit and credit cards issued by Bank of America, economists at the bank wrote last week. Total card spending jumped 9.7% for the week that ended Jan. 9 compared with a year earlier. That was up from a 2% year-over-year increase before the stimulus payments, Bank of America said.

Last week, Biden unveiled a $1.9 trillion coronavirus plan that would provide, among other things, $1,400 checks for most Americans, which, on top of the $600 checks already being distributed, would bring the total to $2,000 per adult.

The new plan would also make available $400 a week in federal benefits for jobless Americans and extend a moratorium on evictions and foreclosures through September. Biden’s proposal will require congressional approval, and some congressional Republicans have already expressed reservations about its size.

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 Crash Involving Unlicensed Teen Driver Sends Woman to Hospital

DON'T MISS

Madre Fire Burns More Than 52,000 Acres in San Luis Obispo County

DON'T MISS

RIP John Harris: Fresno County Rancher, Racehorse Breeder Was a Visionary Leader Who Leaves a ‘Profound Legacy’

DON'T MISS

Valadao, Costa Spar on What Passage of Trump’s Bill Means for Medicaid Recipients

DON'T MISS

US Military Says 200 Marines Being Sent to Support ICE in Florida

DON'T MISS

Boeing Secures $2.8 Billion US Satellite Contract

DON'T MISS

Kaweah Health Names Its New Chief Nurse. She’s From Texas

DON'T MISS

Clovis Police Say At-Risk Missing Woman Found Dead in Mariposa County

DON'T MISS

Over 100 Former Senior Officials Warn Against Planned Staff Cuts at US State Department

DON'T MISS

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

UP NEXT

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

UP NEXT

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

UP NEXT

Poorest Americans Dealt Biggest Blow Under Senate Republican Tax Package

UP NEXT

Poll: Most Americans Say National Divide, Political Violence Threaten Democracy

UP NEXT

Trump Pulls Back 150 Guard Troops From Federal Duties in California

UP NEXT

Suspect Identified in Ambush Shooting That Killed 2 Idaho Firefighters

UP NEXT

Suspect Identified in Ambush Shooting That Killed 2 Idaho Firefighters

UP NEXT

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

UP NEXT

Bill Moyers, Broadcaster and LBJ’s White House Press Secretary, Dies at 91

UP NEXT

Tesla Executive, Elon Musk Confidant Leaves EV Maker, Bloomberg News Reports

Valadao, Costa Spar on What Passage of Trump’s Bill Means for Medicaid Recipients

2 hours ago

US Military Says 200 Marines Being Sent to Support ICE in Florida

3 hours ago

Boeing Secures $2.8 Billion US Satellite Contract

3 hours ago

Kaweah Health Names Its New Chief Nurse. She’s From Texas

3 hours ago

Clovis Police Say At-Risk Missing Woman Found Dead in Mariposa County

3 hours ago

Over 100 Former Senior Officials Warn Against Planned Staff Cuts at US State Department

4 hours ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

4 hours ago

‘Reservoir Dogs’ and ‘Kill Bill’ Actor Michael Madsen Dies at 67

5 hours ago

Fresno Police Recover Some of the $40,000 in Fireworks Stolen From Bullard High Team

5 hours ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

5 hours ago

Fresno Crash Involving Unlicensed Teen Driver Sends Woman to Hospital

A two-vehicle collision sent a woman driving one of the vehicles to the hospital with a head injury Thursday afternoon in Fresno. Fresno pol...

40 minutes ago

A crash causes a traffic jam in northwest Fresno on Thursday, July 3, 2025. (GV Wire/Paul Marshall)
40 minutes ago

Fresno Crash Involving Unlicensed Teen Driver Sends Woman to Hospital

The Madre Fire near New Cuyama has burned 52,593 acres with 5% containment, prompting evacuation orders in several San Luis Obispo County zones as of Thursday, July 3, 2025, afternoon. (CalFire)
2 hours ago

Madre Fire Burns More Than 52,000 Acres in San Luis Obispo County

2 hours ago

RIP John Harris: Fresno County Rancher, Racehorse Breeder Was a Visionary Leader Who Leaves a ‘Profound Legacy’

2 hours ago

Valadao, Costa Spar on What Passage of Trump’s Bill Means for Medicaid Recipients

An ICE agent talks with migrants about their scheduled appointments with U.S. Immigration and Customs Enforcement (ICE) on Father’s Day, to learn about their immigration status, in Chicago, Illinois., U.S., June 15, 2025. (Reuters File)
3 hours ago

US Military Says 200 Marines Being Sent to Support ICE in Florida

Boeing logo and miniature satellite model are seen in this illustration taken, March 10, 2025. (Reuters File)
3 hours ago

Boeing Secures $2.8 Billion US Satellite Contract

3 hours ago

Kaweah Health Names Its New Chief Nurse. She’s From Texas

Clovis Police are searching for Pathmani Goonawardena, 82, who went missing nearly three weeks ago and was last seen driving a white Volvo near Copper and Auberry, possibly en route to Coarsegold. (CHP)
3 hours ago

Clovis Police Say At-Risk Missing Woman Found Dead in Mariposa County

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

Search

Send this to a friend