“Conditions in the labor market remain weak, and the risk of mounting permanent job losses is high, especially if activity continues to be disrupted by repeated virus-related shutdowns,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.
While sales climbed 7.5% in June, private credit card data shows that those gains stalled toward the end of the month as new clusters of infections emerged. “This is my biggest nightmare that we would open and re-close small businesses,” said Sandy Sigal, president and CEO of NewMark Merrill Companies, which runs 85 outdoor lifestyle centers in California, Colorado and Illinois.
But huge U.S. companies continue to lay off people. American Airlines warned its workers Wednesday that it may have to cut up to 25,000 jobs in October because of sharply reduced air travel. Airlines are barred from layoffs until then as a condition of federal aid they have received. American followed United Airlines, which warned 36,000 of its employees last week that they may lose their jobs.
And an extra $600 in weekly unemployment benefits provided by the federal government on top of regular aid from the states will expire this month, unless replaced or extended. Those funds, along with the $1,200 relief checks sent out in April, enabled millions of Americans to stay current on housing costs and bills.