JUNE 29, 2020 – UNEMPLOYMENT CLAIMS FALL FOR NOW
People receiving unemployment benefits fell below 20 million for the first time in two months. Weekly numbers have remained high as new jobless claims totaled 1.48 million last week, exceeding expectations for 1.35 million claims. Numbers are not expected to drop significantly in the near term, as coronavirus cases continue to surge in the south and west, causing governors to reconsider some of their earlier, opening policies. As cases rise, people will voluntarily shy away from malls and restaurants, and places expected to reopen, such as gyms and amusements parks, remain closed.
The US economy entered a recession in the first quarter of the year with a 5 percent contraction. GDP trackers and surveys are expecting a drop in Q2 GDP in the range of 40 to 45.5 percent, the worst seen World War II.