US weekly jobless claims hit 1.5 million, bringing the 13-week total to 46 million
jobless claimsfor the week that ended on Saturday totaled 1.5 million, the Labor Department said on Thursday. That slightly exceeded the consensus economist estimate of 1.3 million.
- That brought the 13-week total to 46 million. Thursday's report also marked the 11th straight week of declining claims.
- Continuing claims, the aggregate total of people receiving
unemployment benefits, totaled 20.5 million for the week that ended on June 6.
More than 1 million Americans filed for
US jobless claims totaled 1.5 million for the week that ended on Saturday, the Labor Department said on Thursday. That slightly exceeded the consensus economist estimate of 1.3 million.The figure raised the 13-week total to 45.7 million, meaning more than one in four American workers have lost a job during the pandemic. It's also more than the roughly 37 million people who filed unemployment-insurance claims during the year and a half of the Great Recession.
"Today's numbers suggest that the reopening story may not be generating as much momentum for job creation as the surprise May payrolls number had suggested," said James Knightley, the chief international economist at ING.
He continued: "The labor market's path to recovery is littered with obstacles that could smother the rebound, from the expiration of federal support for businesses and workers to depressed consumer demand to the resurgence in COVID-19 cases."
For the week that ended on Saturday, 46 states reported 760,526 initial claims in the Pandemic Unemployment Assistance program, which extended benefits to those not previously eligible, such as gig workers.The figures contrasted with the May nonfarm-payrolls report, which said the US added 2.5 million jobs during the month.
But together the two reports show the ebb and flow of the labor market during the coronavirus pandemic and recovery. Some workers are going back to their
There are other signs that the US economy has started to rebound. Retail sales jumped by 17.7% in May, following two months of record declines, as people began shopping again, boosted by fiscal stimulus.Read more: BANK OF AMERICA: Buy these 13 cheap stocks that have unexpectedly strong finances, making them great bets for the next phase of the rally
"We see it in consumer spending, in income data. We see it in payrolls. All of that is helping," Powell said, adding that there were still more than 20 million people who had been "dislodged" from their jobs because of the coronavirus pandemic.He also urged Congress not to remove its support too quickly. "I wouldn't presume to prescribe exactly what you should or shouldn't do, but I would say it would be wise to look at ways to continue to support both people who are out of work and also smaller businesses that may not have vast resources," Powell said.
Some states — including Florida, Texas, and Nevada — have seen a spike in coronavirus cases since reopening, igniting fears of a second wave of infections that could further decimate the US economy if more shutdowns become necessary.Read more: Wall Street's best US and international stock pickers have tripled their clients' money since 2010. The duo break down 5 future-proof companies that could keep investors ahead of the pack through 2030.
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