WASHINGTON - Applications for unemployment benefits in the US declined last week by more than projected, easing concerns of a renewed downturn in the labor market after several large states reported a pickup in coronavirus cases.
The median forecast in a Bloomberg survey of economists called for 1.375 million. Continuing claims - the total number of Americans claiming ongoing unemployment benefits in state programs - declined to 18.1 million in the week ended June 27, compared with a median projection of 18.8 million. The reversal in policy has led a cohort of rehired workers to find themselves out of work once again. Initial claims for regular state programs remain about double the worst week in the 2007-2009 recession, indicating a distressing number of workers continue to get caught up in the economic fallout of the pandemic.