This archive report was first published on 6 August 2020.
On August 6, 2020, the Labor Department released a report indicating a decrease in first-time jobless claims in the United States.
According to the report, workers filing for first-time jobless benefits dropped to 1.19 million in the latest week, well below the expectations of analysts.
However, the four-week average for initial unemployment claims remained relatively unchanged at 1.33 million in the week ended August 1.
The data suggests that job losses have continued in recent weeks, with cases of COVID-19 spiking in many states and authorities reimposing some restrictions.
Despite the decline in jobless claims, the total number of workers continuing to receive jobless benefits fell to 16.1 million, a number nearly 10 times higher than a year earlier.
The insured unemployment rate dipped six-tenths to a still-high 11 percent through the week ended July 25.
When all programs are combined, including pandemic emergency assistance and expanded unemployment benefits, 31.2 million workers were receiving help through the week ended July 18, compared to just 1.7 million a year earlier.
Economists warn that the job market may have stalled in July, with the government employment report expected to show a far smaller increase than in June.
“Repeated shutdowns for virus containment remain a threat to the labor market, which is already weak. The possibility of mounting layoffs that could become permanent is high,” said Rubeela Farooqi of High Frequency Economics.
“Overall, without effective virus containment the recovery remains at risk from ongoing job losses that could further restrain incomes and spending.”
