JULY 27, 2020 – JOBLESS CLAIMS RISE AS CORONAVIRUS CONTINUES
The number of unemployment claims filed rose more than expected last week with the Labor Department reporting jobless claims of 1.416 million. It’s the 18th straight week where initial claims exceeded more than 1 million, and broke a 15-week trend of declining initial claims. Economists polled expected 1.3 million claims.
Continuing claims, which means people receiving benefits for at least two straight weeks, dropped by 1.107 million to 16.197 million for the week ending July 11.
The coronavirus continues to inflict damage on the US economy as some states are reversing openings to try and contain the spread. Cases are rising at a record pace which is affecting the labor market. The states showing the highest claims; California, Florida and Georgia; are also reporting the most new virus cases.
The additional $600/week unemployment benefit is about to expire at the end of this week, however, the government is considering extending it at a reduced rate of $100/week thought December.