The number of Americans applying for unemployment benefits has fallen to its lowest level since the coronavirus pandemic began in mid-March.
The latest figures from the Ministry of Labor’s unemployment claims, which cover the week ending August 1, show that more than 1.18 million workers sought help last week, pushing the total from closure to more than 55 million.
Economists surveyed by Refinitive expected 1
DIFFERENT GENDER OF TASKS IN US LOST ON CORONAVIRUS CAN BE CONSTANTLY RECEIVED
The report comes amid escalating fears that the outbreak of COVID-19 and a new round of business closures will take an early economic recovery just after the additional $ 600 unemployment benefits expire.
But the figure – the lowest since March 14, just as the pandemic hit the economy – shows that there is still some driving force behind the labor market turnaround, even as employers continue to cut jobs.
He notes for the 20th consecutive week that the number of unemployed claims is over 1 million; before the pandemic, the record was 695,000, set in 1982.
Continuing the claims, the number of people receiving benefits after an initial week of assistance decreased by 844,000 to 16.1 million.
“The drop in unemployment insurance claims is a positive sign that the recovery is progressing cautiously,” said Daniel Zhao, a senior economist at Glassdoor. “However, this report also shows that unemployment benefits remain a vital lifesaver for the lives of tens of millions of Americans during the health and economic crisis.”
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Democratic leaders and White House officials are currently negotiating another emergency package, but are thinking of expanding sweetened unemployment benefits. Republicans say this discourages Americans from returning to work and have instead offered a replacement of $ 200 a week; Democrats have retained the benefits, which should be extended until the end of the year, and made this a key moment in the stimulus talks.
The July report on the jobs of the Ministry of Labor, which will be published on Friday, is added as a matter of urgency. Unemployment figures will shed light on whether a new round of business closures amid a spike in COVID-19 cases is slowing economic development and job recovery.
The US economy is expected to show 1.6 million jobs last month, down from 4.8 million in June, a record high. Analysts predict that unemployment will fall to 10.5% from 11.1%.
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