The number of laid-off workers seeking unemployment benefits remained stuck at 1.3 million last week, an historically high level that indicates many companies are still cutting jobs as the viral outbreak intensifies.
By CHRISTOPHER RUGABER
WASHINGTON (AP) — The number of laid-off workers seeking unemployment benefits remained stuck at 1.3 million last week, an historically high level that indicates many companies are still cutting jobs as the viral outbreak intensifies.
The elevated level of applications for jobless aid is occurring as new confirmed cases of coronavirus are spiking across much of the Sunbelt, threatening to weaken the economic recovery. Case counts are rising in 40 states and 22 states have either paused or reversed their efforts to reopen their economies, according to Bank of America.
Rising infections paralleled rising applications for aid in some states getting hit right now, and fell in states with declining infections. In Florida claims doubled to 129,000, and in Georgia they rose nearly one-third to 136,000, according to the Labor Department’s Thursday report. In California they increased 23,000 to nearly 288,000. Applications also rose in Arizona and South Carolina.
Applications fell in Texas, which has seen infections spike, and in New Jersey and New York, where the virus is mostly under control.
“Conditions in the labor market remain weak and the risk of mounting permanent job losses is high, especially If activity continues to be disrupted by repeated virus-related shutdowns,” said Rubeela Farooqi, chief U. S. economist at High Frequency Economics.
A separate government report showed that retail sales jumped 7.5% in June, a healthy gain that suggested the economy was healing just before the viral resurgence has weighed on hopes for a steady recovery.
