WASHINGTON: The number of Americans seeking unemployment benefits dropped below one million last week for the first time since the start of the COVID-19 pandemic in the United States, but that was likely as the expiration of a US$600 weekly supplement discouraged some from filing claims.
Claims peaked at a record 6.867 million in late March. Even with last week's decrease, claims are well above their 695,000 peak during the 2007-09 Great Recession. A total 28.3 million people were receiving unemployment checks at the end of July. But there has been confusion over the order. States are required to cover US$100 of the benefit, but governors have said they don't have the financial capacity after revenues were decimated in the fight against the pandemic.
While the loss of the supplement might have helped to push weekly jobless claims down, economists estimate it will reduce household income by roughly US$75 billion per month, which will weigh on consumer spending and cause struggling companies to lay off workers. A government-funded program offering businesses loans to help with wages has also lapsed.
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Source: The Straits Times - 🏆 8. / 63 Read more »