US jobless claims fall below 1 million but remain high

Decline suggests layoffs are slowing, but still exceed pre-pandemic record.

By

National News

August 13, 2020 - 9:47 AM

The Lehigh Valley’s unemployment rate rose to 14.2% in June, slightly up from May’s revised data, as the effects of the coronavirus and efforts to curb its spread continue to affect jobs. (Geri Lavrov/Getty Images/TNS)

WASHINGTON (AP) — The number of laid-off workers applying for unemployment aid fell below 1 million last week for the first time since the pandemic intensified five months ago yet still remains at a high level. The viral pandemic keeps forcing layoffs just as the expiration of a $600-a-week federal jobless benefit has deepened the hardships for many.

The Labor Department said applications fell to 963,000, the second straight drop, from 1.2 million the previous week. The decline suggests that layoffs are slowing, though last week’s figure still exceeds the pre-pandemic record of just under 700,000. 

The pandemic, the shutdowns that are meant to fight it and the reluctance or inability of many people to shop, travel or eat out are continuing to weaken the economy and force companies to cut staff. Twenty-three states have paused or reversed their business re-openings. In a hopeful sign, the rate of new confirmed viral cases has declined in the past couple of weeks, though it remains far above the rates that prevailed in May and June.

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