WASHINGTON (AP) – The number of Americans claiming unemployment benefits fell last week to 860,000, a traditionally high number illustrating the great economic damage that still occurs nine months after the first case of COVID-19 detected in the United States.
The Department of Labor said Thursday that unemployment applications in the United States had fallen to 33,000 since last week and that 12. 6 million were receiving classic unemployment benefits, up from 1. 7 million a year ago.
The pandemic has caused a colossal surprise to the economy: until the pandemic disrupted the activities of American companies, from factories to restaurants in the family circle, requests for weekly unemployment assistance had never exceeded 700,000 in the United States, which exceeded 700,000 for 26 consecutive weeks. .
The overall economy, measured through gross domestic product, collapsed at an annual rate of 31. 7, consistent with the penny from April to June, during the 3 worst months ever recorded, with millions of jobs lost.
The economy and labour market have recovered from the initial shock. Employers signed 10. 6 million jobs from May to August, but that remains less than part of the jobs lost in March and April.
The recovery remains fragile, threatened by ongoing COVID-19 infections as schools begin to reopen and the inability to provide an economic bailout to Washington, and corporations continue to lay off staff while absorbing sales lost to the pandemic.
Raytheon Technologies Corp. announced this week its goal of eliminating more than 15,000 jobs this year at its Pratt jet engine manufacturer offices.
A steep decline has left airlines with tens of thousands more staff needed to operate the particularly small number of flights. This spring, airlines began receiving $ 25 billion in federal grants and loans to keep staff on their payroll for six months. On September 30, the 3 largest US airlines are expected to take leave or lay off about 40,000 employees starting October 1.
Another $600 in weekly unemployment benefits sold out on July 31, restricting families who depended on the accumulation of payments. President Donald Trump issued an executive order on August 8 that offered a reduced edition of extended unemployment aid. allows them to accumulate weekly benefits through $300 or $400.
This program is expiring.
“Layoffs remain widespread and a traditionally high number of Americans continue to make some kind of unemployment benefits,” Nancy Vanden Houten, senior American economist at Oxford Economics, wrote in a study report. “The dangers of the problem to the economy and the labour market, as the recovery seems to be losing momentum. “
Last week, nearly 659,000 people implemented unemployment assistance under a new program that extends eligibility for the first time to self-employed and on-demand workers, up from 868,000 last week. of a pandemic does not conform to seasonal trends, so it is listed separately.
In total, the Ministry of Labour reported that 29. 8 million other people were receiving some form of unemployment benefits, this figure can be inflated by double counting across states. Analysts are also involved in evidence that the number of others receiving special assistance for a pandemic has been inflated through fraud cases in California.