US Jobless Claims Fall 10/22 08:24
The number of Americans seeking unemployment benefits fell last week to
787,000, a sign that job losses may have eased slightly but are still running
at historically high levels.
WASHINGTON (AP) -- The number of Americans seeking unemployment benefits
fell last week to 787,000, a sign that job losses may have eased slightly but
are still running at historically high levels.
With confirmed infections having neared 60,000 in the past week, the highest
level since July, many consumers have been unable or reluctant to shop, travel,
dine out or congregate in crowds -- a trend that has led some employers to keep
cutting jobs. Several states, such as Ohio and Idaho, are reporting a record
number of hospitalizations from the virus.
Thursday's report from the Labor Department said the number of people who
are continuing to receive unemployment benefits tumbled by 1 million to 8.4
million. The decline shows that some of the unemployed are being recalled to
their old jobs or are finding new ones. But it also indicates that many jobless
Americans have used up their state unemployment aid -- which typically expires
after six months -- and have transitioned to a federal extended benefits
program that lasts an additional three months.
Many jobless recipients are now receiving only regular state unemployment
payments because a federal weekly supplement of $300 has ended in nearly all
states. And a $600-a-week federal benefit expired over the summer.
The still-elevated number of jobless claims underscores that a full recovery
from the pandemic recession remains far off. Job growth has slowed for three
straight months, leaving the economy still 10.7 million jobs short of its
pre-pandemic level. The unemployment rate remains high at 7.9%.
And some major companies keep announcing layoffs. Aramark, a food services
contractor that provides concessions at sports stadiums, said Wednesday that it
would lay off 975 workers in Denver, most of whom worked at Coors Field, home
of the Colorado Rockies. The company is also cutting 550 jobs in Kansas City.
Most major league baseball games this season were played with limited or no
crowds, thereby reducing the need for concession workers
Amtrak said at a congressional hearing Wednesday that it would have to cut
2,400 jobs unless Congress approves emergency aid as part of another stimulus
Yet negotiations in Congress over another round of financial aid have
largely stalled, with little prospect for a deal before Election Day.
Democratic House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are
continuing to negotiate. But Republican Senate Majority Leader Mitch McConnell
has warned the White House against agreeing to a large package that would be
opposed by most Senate Republicans
Unless Congress can agree on a significant new rescue aid program, most
economists expect growth to slow in the final three months of the year from a
rapid rebound in the July-September quarter. That would mean a more prolonged
recovery of the jobs and output that the economy lost to the coronavirus.
Congress' failure to extend aid would also deepen the hardship for many of
the jobless, who are struggling to pay bills with unemployment checks that, on
average, replace just one-third of their prior earnings. Nearly one in six
renters -- 11.8 million people -- are behind on their rent payments, according
to an analysis of Census data by the Center on Budget and Policy Priorities.
The number of people whose state benefits have expired and are now receiving
aid for an additional 13 weeks from a federal extended benefit program rose
last week by 509,000 to 3.3 million, the government said.
An additional 345,000 people applied for jobless aid under a separate
program that made the self-employed, contractors and gig workers eligible for
unemployment benefits for the first time. Those figures aren't adjusted for
seasonal trends, so they are reported separately.
Both the extended aid and the jobless aid for contractors and gig workers
will expire by year's end. Millions of unemployed people would then be left
without any benefits at all. An exception is in states with particularly high
unemployment, where laid-off workers can receive 13 more weeks of state aid.