WASHINGTON: The number of Americans filing new claims for unemployment benefits fell only slightly last week, adding to signs that the economic recovery was losing steam as the COVID-19 pandemic intensifies and fiscal stimulus ends.
Initial claims for state unemployment benefits fell 7,000 to a seasonally adjusted 751,000 for the week ended Oct 31, the Labor Department said. Data for the prior week was revised to show 7,000 more applications received than previously reported. Unadjusted claims edged down 543 to 738,166 last week. Economists prefer the unadjusted number given earlier difficulties adjusting the claims data for seasonal fluctuations because of the economic shock caused by the pandemic.
The services industry, which accounts for more than two-thirds of the US economy, has been hardest hit by the pandemic, making it difficult to recoup all the 22.2 million jobs lost during the crisis. The number of people receiving benefits after an initial week of aid declined 538,000 to 7.285 million in the week ending Oct 24. A total 3.961 million filed for extended unemployment benefits in the week ending Oct. 17. At least 21.5 million people were receiving unemployment benefits in mid-October.