WASHINGTON – The number of laid-off Americans applying for unemployment benefits fell to a still-elevated 881,000 last week, evidence that the viral pandemic keeps forcing many businesses to slash jobs.
The latest figures, released Thursday by the U.S. Labor Department, suggest that nearly six months after the eruption of the coronavirus, the economy is still struggling to sustain a recovery and rebuild a job market that was devastated by the recession. In the previous week, more than 1 million had sought jobless aid.
All told, the government said 13.3 million people are continuing to receive traditional jobless benefits, up from 1.7 million a year ago.
The nearly 1 million people who keep applying for unemployment aid each week points to a sluggish pace of improvement. Before the pandemic struck the economy in March, the number of people seeking jobless aid had never topped 700,000 in a week, not even during the depths of the 2007-2009 Great Recession. The economy has recovered 9.3 million, or only 42%, of the jobs that were lost in March and April.
“The data show that layoffs remain widespread and the recovery in the labor market is occurring at a frustratingly slow pace,” economists Nancy Vanden Houten and Gregory Daco of Oxford Economics wrote in a research note.
Thursday's figure, though historically high, marked the lowest number of jobless claims since the viral pandemic first paralyzed the economy in March. But beginning this week, the department tweaked the way it adjusts its calculations to account for seasonal changes, thereby making it difficult to compare last week's figure with previous weeks'. Unadjusted for seasonal variations, though, the numbers show that 833,000 Americans applied for benefits last week, up from 826,000 the week before.
In addition to the laid-off people who applied last week for state benefits, 759,000 others sought jobless aid under a new program that has made self-employed and gig workers eligible for the first time.
That figure isn't adjusted for seasonal trends, so it's reported separately. But including that group, the Labor Department said 29.2 million people are receiving some form of unemployment benefits, though that figure might be inflated by double-counting by some states.
On Friday, when the government issues the jobs report for August, it's expected to report that employers added roughly 1.4 million jobs last month. That would still leave the economy about 11 million jobs short of the number it's lost to the pandemic.
Financial markets update
• The S&P 500 fell 125.78 points, or 3.5%, to 3,455.06.
• The Dow Jones Industrial Average dropped 807.77 points, or 2.8%, to 29,292.73.
• The Nasdaq composite fell 598.34 points, or 5%, to 11,458.10.
• The Russell 2000 index of smaller company stocks dropped 47.61 points, or 3%, to 1,544.68.
For the week:
• The S&P 500 is down 52.95 points, or 1.5%.
• The Dow is down 361.14 points, or 1.3%.
• The Nasdaq is down 237.53 points, or 2%.
• The Russell 2000 is down 33.66 points, or 2.1%.