The number of Americans filing new claims for unemployment benefits last week totaled 1,434 million, the Labor Department reported Thursday, roughly in line with expectations, as the coronavirus pandemic continues to devastate the U.S. economy.
It was the nineteenth consecutive week in which initial claims totaled at least 1 million and the second consecutive week in which initial claims increased after decreasing for 15 consecutive weeks.
Economists surveyed by Dow Jones expected claims to rise to 1.45 million for the week ending July 25.
In a separate report, the government said second-quarter gross domestic product slumped a record 32.9% on an annualized basis. Although it was not as bad as the expected decrease of 34.7%, it was the worst drop in history, and the closest one occurred in mid-1921.
Continuing claims, which are comprised of those receiving unemployment benefits for at least two consecutive weeks, increased by 867,000 to 17,018 million for the week ending July 18. Continuous claims data is delayed by one week.
“The level of claims remains high and the increase in continuous claims definitely reflects the reclosings in the last few weeks [that] we’ve seen in some states where the virus has broken out, “said Peter Boockvar, chief investment officer at Bleakley Advisory Group.” The economic recovery will be uneven and uneven until we have a vaccine where most of the world is inoculated en masse. “
Initial claims filed in California totaled 249,007, the Labor Department said. In Florida and Georgia, however, they decreased from more than 100,000 to 87,062 and 84,581, respectively. These states are among those that have seen a resurgence in coronavirus cases as state officials ease quarantine and social distancing measures.
The latest numbers of claims come as lawmakers fight to push for a new coronavirus relief package. Earlier this week, Republicans proposed a second round of $ 1,200 stimulus checks. However, White House chief of staff Mark Meadows said on Wednesday that both Democrats and Republicans “are not close to a deal.”
Last month, the Democratic-controlled House approved a $ 3 trillion coronavirus relief package that included the continuation of a $ 600 weekly additional unemployment benefit. Republicans have declined that proposal. Supplemental benefits expire on Friday.
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