The number of Americans applying for unemployment benefits increased more than expected last week, as the country continues to grapple with the economic impacts of the coronavirus pandemic.
Weekly initial jobless claims reached 1.3 million for the week ending July 11, the Labor Department said Thursday. Economists surveyed by Dow Jones expected a print of 1.25 million.
It was also the sixteenth week in a row that initial claims totaled at least 1 million. The continuing claims, which refer to those who receive benefits for at least two consecutive weeks, totaled 17.33 million during the week of July 4.
“There are clear indications that long-term damage is starting to increase, permanent layoffs are starting to increase and the flow of workers from employment to unemployment is still rising,” said Michael Pearce, US economist at Capital Economics, in a note. . “Also, in the absence of a vaccine, the need for continued physical distance will prevent a full recovery.”
These staggering unemployment numbers occur as the United States struggles to stem the coronavirus outbreak, particularly in states like Florida, California, Texas, and Arizona. Nearly 3.5 million cases have been confirmed in the U.S., according to Johns Hopkins University.
In Texas, Governor Greg Abbott joined an increasing number of governors who demand that their state constituents wear masks in public. Meanwhile, Florida faces an ICU bed shortage, and Arizona has set a record for hospital beds in use. California recently reversed some of its reopening measures amid yet another spike in Covid cases.
Initial claims filed in Texas and Florida last week totaled more than 100,000 in each state, the Labor Department said. In California, more than 200,000 workers applied for benefits, by far most of any state. More than 30,000 workers in Arizona also filed initial claims.
Companies like American Airlines are also warning employees about the potential for massive job cuts. The airline told employees it expects to have more than 20,000 excess people this fall.
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