Please ensure Javascript is enabled for purposes of website accessibility
US Jobless Claims Decline to a Still-High 900,000
gvw_ap_news
By Associated Press
Published 3 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

Police Investigating Possible Vandalism at Jewish Temple, Catholic Church

DON'T MISS

Valley PBS’ Top 2 Executives Departing. Were Their Resignations a Surprise?

DON'T MISS

Unfiltered Clip: Insights from Dr. Trita Parsi on Navigating the Israel-Palestine Conflict

DON'T MISS

Hamas Is Sending a Delegation to Egypt for Further Cease-Fire Talks in the Latest Sign of Progress

DON'T MISS

President Joe Biden Calls Japan and India ‘Xenophobic’ Nations That Do Not Welcome Immigrants

DON'T MISS

DEA’s Marijuana Reclassification Could Revive California’s Struggling Pot Industry

DON'T MISS

How to Reclaim the Israel-Palestine Debate From the Radicals on Both Sides

DON'T MISS

US Airstrike Targeting Al-Qaida Leader in Syria Killed a Farmer, American Military Says

DON'T MISS

Today’s Campus Protests Aren’t Nearly as Big or Violent as Those of the Vietnam Era

DON'T MISS

Mike Yaz Homers at Fenway In Giants Win After Visit From His Hall of Fame Grandpa

UP NEXT

Another State Department Official Resigns Over Biden’s Gaza Policy

UP NEXT

Senators Want Limits on Government’s Use of Facial Recognition Technology for Airport Screening

UP NEXT

Biden Says ‘Order Must Prevail’ on Campuses, but He Won’t Send National Guard

UP NEXT

Police Dismantle UCLA Tent Camp, Take Pro-Palestinian Protesters Into Custody

UP NEXT

Fresno State’s Randa Jarrar Dragged Out of Event Featuring Big Bang Theory’s Mayim Bialik

UP NEXT

Trump Calls Judge ‘Crooked’ After Facing a Warning of Jail Time if He Violates a Trial Gag Order

UP NEXT

Biden’s Historic Marijuana Shift Is His Latest Election Year Move for Young Voters

UP NEXT

The Latest | In Israel, Blinken Pushes Hamas to Agree on Gaza Cease-Fire Deal

UP NEXT

What Marijuana Reclassification Means for the United States

UP NEXT

Rep. Marjorie Taylor Greene Vows to Force a Vote on Ousting House Speaker Mike Johnson

Hamas Is Sending a Delegation to Egypt for Further Cease-Fire Talks in the Latest Sign of Progress

9 hours ago

President Joe Biden Calls Japan and India ‘Xenophobic’ Nations That Do Not Welcome Immigrants

9 hours ago

DEA’s Marijuana Reclassification Could Revive California’s Struggling Pot Industry

10 hours ago

How to Reclaim the Israel-Palestine Debate From the Radicals on Both Sides

10 hours ago

US Airstrike Targeting Al-Qaida Leader in Syria Killed a Farmer, American Military Says

10 hours ago

Today’s Campus Protests Aren’t Nearly as Big or Violent as Those of the Vietnam Era

10 hours ago

Mike Yaz Homers at Fenway In Giants Win After Visit From His Hall of Fame Grandpa

10 hours ago

Lagging Revenue Drives California Budget Deficit as Deadline Nears

11 hours ago

Valley Children’s Gets ‘Historic’ Gift to Boost Cancer Treatments. How Big Is It?

Californians Are Protecting Themselves from Wildfire. Why Is There an Insurance Crisis?

11 hours ago

Police Investigating Possible Vandalism at Jewish Temple, Catholic Church

Fresno police are investigating an incident of flyers posted on the exterior windows of Temple Beth Israel, and also at St. Anthony of Padua...

5 hours ago

5 hours ago

Police Investigating Possible Vandalism at Jewish Temple, Catholic Church

Entertainment /
8 hours ago

Valley PBS’ Top 2 Executives Departing. Were Their Resignations a Surprise?

Video /
8 hours ago

Unfiltered Clip: Insights from Dr. Trita Parsi on Navigating the Israel-Palestine Conflict

9 hours ago

Hamas Is Sending a Delegation to Egypt for Further Cease-Fire Talks in the Latest Sign of Progress

9 hours ago

President Joe Biden Calls Japan and India ‘Xenophobic’ Nations That Do Not Welcome Immigrants

10 hours ago

DEA’s Marijuana Reclassification Could Revive California’s Struggling Pot Industry

10 hours ago

How to Reclaim the Israel-Palestine Debate From the Radicals on Both Sides

10 hours ago

US Airstrike Targeting Al-Qaida Leader in Syria Killed a Farmer, American Military Says

MENU

CONNECT WITH US

Search

Send this to a friend