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1.3 million Americans filed first-time unemployment claims last week

Another 1.3 million people filed for first-time unemployment benefits, the 17th consecutive week with over one million claims. CNN's Christine Romans reports.

Posted: Jul 17, 2020 6:01 AM
Updated: Jul 17, 2020 6:01 AM

It's still not easy to remain employed in the US, nearly four months after the coronavirus pandemic began upending the economy.

Another 1.3 million people filed first-time jobless claims on a seasonally adjusted basis for the week ending July 11, according to the Department of Labor. That's down 10,000 from the prior week's revised level.

On an unadjusted basis, more than 1.5 million people filed first-time claims, up almost 109,000 from the week before. The seasonal adjustments are traditionally used to smooth out the data, but that has tended to have the opposite effect during the pandemic.

Weekly seasonally adjusted first-time unemployment applications have been on the decline for more than three months since their peak in the last week of March. But last week's drop was less than expected.

"Overall, filings remain high and are declining at a stubbornly slow pace," said Rubeela Farooqi, chief US economist for High Frequency Economics, noting that the risk of mounting permanent job losses is high. "The pace could slow even further or reverse in coming weeks in response to a surge in virus cases and related closures of businesses."

Continued claims, which count workers who have filed claims for at least two weeks in a row, stood at more than 17.3 million for the week ending July 4, down 422,000 from the prior week. These seasonally adjusted claims peaked in May at nearly 25 million.

On an unadjusted basis, however, continued claims rose by more than 838,000 to 17.3 million.

This was the first increase in both unadjusted initial and continued claims in several weeks, which concerned some economists.

"The rising UI claims add to the evidence that the recovery may be stalling and come at a critical juncture in the crisis as Covid-19 cases rise around the country and expanded unemployment benefits for Americans are set to expire," said Glassdoor Senior Economist Daniel Zhao, noting that the additional $600 federal unemployment benefit ends later this month unless Congress opts to extend it.

"The risk of a surprise drop in employment in July is rising, pointing to a roller coaster recovery as the labor market starts to turn down again," Zhao added.

In addition to those filing for traditional unemployment claims, about 928,500 million people in 47 states filed for first-time pandemic unemployment assistance last week, down almost 118,000 from the week before. And almost 14.3 million people claimed continued pandemic benefits across 48 states for the week ending June 27. That's up nearly 406,000 from the prior week.

The pandemic program was created by Congress in March to respond to the coronavirus outbreak. It provides temporary benefits to workers who typically aren't eligible for payments, including freelancers, independent contractors, the self-employed and certain people affected by the coronavirus. It expires at the end of the year.

Looking at all workers participating in an array of unemployment programs, just over 32 million Americans claimed jobless benefits the week ending June 27, down about 433,000 from the prior week.

That total includes those in the traditional and pandemic unemployment programs, as well as the pandemic emergency unemployment compensation program, which has nearly 936,500 filers. Lawmakers created it in March to provide those who have exhausted their benefits with an additional 13 weeks of payments. It also expires at the end of 2020.

Federal spending on benefits soars

The federal government shelled out more than $80 billion in June to pay for Congress' historic enhancement to the nation's jobless program, bringing the total spent to nearly $171.5 billion this fiscal year, Treasury Department data shows.

In addition to the pandemic unemployment assistance program and the 13-week extension of benefits, lawmakers also boosted weekly benefits by $600, which the jobless receive in addition to their state payments.

States, meanwhile, delivered more than $35 billion in benefits last month, compared to about $4 billion in March. So far, they've spent more than $102 billion this fiscal year, according to the Treasury Department.

All told, government spending on unemployment benefits has soared to nearly $324 billion this fiscal year, as of July 14, with nearly $50 billion spent this month alone.

The crush of filers has taken a toll on states, draining their unemployment trust funds. Eight states have had to borrow a total of nearly $13 billion from the federal government to pay their share of jobless benefits, which typically last 26 weeks. The unemployed are guaranteed to receive their benefits, regardless of whether states have to borrow to pay them.

California had to ask for even more money from the Treasury Department this month after underestimating how much it would need. The Golden State now has authorization to borrow $7 billion this month, up from $4 billion.

More states are likely to turn to the federal government for loans in coming months, said Wayne Vroman, an associate at the Urban Institute. While companies have brought back millions of workers, the unemployment rate in June was 11.1%, the highest since World War II.

"The number of states that will borrow is just going to keep increasing," Vroman said.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 111505

Reported Deaths: 3506
CountyConfirmedDeaths
Marion20699758
Lake10217318
Elkhart6368109
St. Joseph604597
Allen5965200
Hamilton4676109
Vanderburgh334129
Hendricks2650122
Monroe240836
Johnson2257122
Tippecanoe221013
Clark211756
Porter205244
Cass19319
Delaware187061
Vigo176622
Madison157775
LaPorte136737
Floyd130361
Howard127563
Kosciusko119017
Bartholomew114957
Warrick114135
Marshall98524
Dubois94918
Boone94446
Hancock90542
Grant88233
Noble88132
Henry76324
Wayne73914
Jackson7349
Morgan69638
Shelby66529
Daviess64127
LaGrange63011
Dearborn62628
Clinton59112
Harrison56024
Putnam5329
Montgomery50521
Lawrence50328
Knox4869
White47914
Gibson4744
Decatur45339
DeKalb45011
Miami4243
Fayette41813
Greene41835
Jasper3822
Steuben3677
Scott35310
Sullivan32912
Jennings30912
Posey3020
Franklin29725
Clay2925
Orange28224
Ripley2788
Carroll27013
Wabash2638
Washington2581
Whitley2526
Starke2517
Wells2472
Adams2443
Jefferson2433
Fulton2352
Huntington2213
Spencer2194
Tipton21722
Perry20913
Randolph2067
Jay1700
Newton17011
Owen1641
Martin1620
Rush1514
Pike1411
Vermillion1260
Fountain1152
Pulaski1141
Blackford1132
Crawford1030
Brown1013
Parke932
Benton880
Union770
Ohio767
Switzerland680
Warren401
Unassigned0225

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 144309

Reported Deaths: 4615
CountyConfirmedDeaths
Franklin25977603
Cuyahoga17092642
Hamilton12756308
Montgomery7501152
Lucas7119357
Butler563299
Summit5096249
Marion306347
Mahoning2991279
Warren291048
Stark2739168
Pickaway263344
Lorain226386
Delaware213520
Fairfield202050
Columbiana191980
Licking185762
Trumbull1848131
Clark172338
Wood170671
Clermont162620
Lake157649
Medina143038
Allen136767
Greene135228
Miami135049
Portage107466
Mercer105317
Tuscarawas91220
Wayne90166
Erie89944
Ross85622
Richland78419
Madison78012
Darke76039
Belmont70727
Geauga70347
Hancock6579
Ashtabula64348
Athens5972
Lawrence59418
Shelby5819
Auglaize5659
Sandusky55420
Putnam54123
Huron5237
Union4932
Ottawa46530
Scioto4646
Seneca43914
Preble42013
Holmes3717
Muskingum3712
Jefferson3184
Henry29712
Champaign2933
Logan2933
Perry2859
Defiance28110
Clinton27813
Knox27815
Brown2752
Hardin25013
Morrow2492
Washington24823
Fulton2341
Jackson2314
Coshocton23011
Fayette2256
Ashland2234
Highland2203
Crawford2186
Wyandot20112
Williams1983
Gallia18012
Meigs1729
Hocking1619
Pike1580
Guernsey1567
Carroll1507
Adams1214
Van Wert1113
Monroe10618
Paulding1010
Harrison611
Morgan470
Vinton453
Noble270
Unassigned00
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