People who lost their jobs wait in line to file for unemployment following an outbreak of the coronavirus disease , at an Arkansas Workforce Center in Fayetteville, Arkansas April 6, 2020. — Reuters pic
Initial claims for state unemployment benefits fell 60,000 to a seasonally adjusted 1.48 million for the week ended June 20, the Labour Department said. There was a jump in claims in California, which together with Texas and Florida, has seen a surge in novel coronavirus cases. Economists polled by Reuters had forecast 1.3 million applications in the latest week.
State and local governments, whose budgets have been squeezed by the Covid-19 fight, are also cutting jobs. The pandemic is upending the flow of goods. In another report, the Commerce Department said the goods trade deficit jumped 5.1 per cent to US$74.3 billion in May. Exports tumbled 5.8 per cent while imports decreased 1.2 per cent. With imports declining again, retailers and wholesalers drew down inventories.