The number of Americans applying for unemployment benefits increased more than expected last week as the country continues to struggle with the economic effects of the coronavirus pandemic.
The initial week’s unemployment claims amounted to 1.3 million for the week ending July 11, the Ministry of Labor said on Thursday. Economists in demand by the Dow Jones expected a pressure of 1.25 million.
It was also the 1
“There are clear signs that long-term damage is starting to increase, with permanent layoffs starting to climb and the flow of workers from employment to unemployment still high,” said Michael Pearce, senior U.S. economist at Capital Economics, in a note. “In addition, in the absence of a vaccine, the need for ongoing physical distance will prevent a complete recovery.”
These staggering unemployment rates come as the United States struggles to contain the coronavirus outbreak, especially in states such as Florida, California, Texas and Arizona. Nearly 3.5 million cases have been confirmed in the United States, according to Johns Hopkins University.
In Texas, Gov. Greg Abbott went with a growing number of governors who demanded that their state constituencies wear masks in public. Florida is facing a shortage of ICU beds and Arizona has set a record for hospital beds used. California recently reversed some of its reopening efforts in the midst of another peak in the Covid case.
The initial claims filed in Texas and Florida last week amounted to more than 100,000 in each state, the Department of Labor said. In California, more than 200,000 workers applied for benefits, the vast majority of any state. More than 30,000 Arizona workers also filed initial claims.
Companies such as American Airlines also warn employees about the potential for massive cuts. The airline told employees that they expect to be overestimated by more than 20,000 people this fall.
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