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.

Cases: 1011197

Reported Deaths: 16524
CountyCasesDeaths
Marion1359292129
Lake666181167
Allen58254802
Hamilton46498467
St. Joseph44559617
Elkhart36044510
Vanderburgh32333481
Tippecanoe28037260
Johnson25196446
Hendricks23960360
Porter22985367
Madison18820410
Clark18609253
Vigo17530303
Monroe15319200
LaPorte15230252
Delaware15127264
Howard14801290
Kosciusko12410149
Hancock11773176
Bartholomew11695180
Warrick11305189
Floyd11138215
Wayne11023253
Grant10131220
Morgan9506177
Boone8965116
Dubois8281131
Henry8252153
Dearborn823493
Noble8064106
Marshall7981135
Cass7556123
Lawrence7479172
Shelby7216119
Jackson700990
Gibson6614115
Harrison651892
Huntington6447100
Knox6427106
DeKalb6363100
Montgomery6293112
Miami595298
Putnam584179
Clinton579271
Whitley568455
Steuben566876
Wabash5363104
Jasper536180
Jefferson513297
Ripley501987
Adams483777
Daviess4684115
Scott439875
Greene427296
Clay426960
Wells426088
White420964
Decatur4177104
Fayette407387
Jennings390262
Posey377544
LaGrange361778
Washington360451
Randolph3476100
Spencer340743
Fountain336160
Sullivan330852
Starke319171
Owen315571
Fulton313468
Orange295064
Jay285546
Franklin266443
Perry265752
Rush263832
Carroll262434
Vermillion259854
Parke232029
Pike229643
Tipton229059
Blackford195042
Pulaski184657
Crawford160125
Newton159848
Benton151217
Brown147047
Martin139319
Switzerland135311
Warren121416
Union107216
Ohio84613
Unassigned0544

Ohio Coronavirus Cases

Data is updated nightly.

Cases: 1524169

Reported Deaths: 23955
CountyCasesDeaths
Franklin1646591696
Cuyahoga1468932459
Hamilton1056051431
Montgomery742551279
Summit620221111
Lucas56539917
Butler51696718
Stark468601064
Lorain35783585
Warren32903377
Mahoning30927693
Clermont28271330
Lake27179448
Delaware24263164
Licking24027294
Trumbull22993561
Fairfield22438247
Greene22414326
Medina22149313
Clark19920354
Richland18643292
Portage18073252
Wood17505224
Allen16054279
Miami15627306
Muskingum14890185
Columbiana14153274
Wayne13852271
Tuscarawas12777311
Marion12016180
Scioto11497162
Pickaway11386142
Erie10951184
Ross10614203
Ashtabula9809204
Lawrence9783153
Hancock9741155
Belmont9333209
Geauga9008157
Jefferson8600199
Huron8427143
Union822259
Washington8114144
Sandusky7875151
Athens779579
Knox7766144
Darke7695158
Seneca7405145
Ashland6993130
Auglaize681799
Shelby6540115
Brown640091
Crawford6292130
Defiance6241105
Mercer617893
Fulton605196
Highland602899
Guernsey596371
Madison595678
Logan594596
Clinton585193
Preble5730125
Putnam5354110
Williams530888
Perry519863
Champaign514273
Jackson512473
Ottawa490586
Coshocton488383
Morrow460558
Pike435067
Fayette430363
Hardin420780
Gallia419367
Adams417995
Van Wert374082
Henry366972
Holmes3653125
Hocking357582
Wyandot325262
Carroll304365
Paulding280747
Meigs267251
Monroe216254
Noble201247
Morgan194333
Harrison182646
Vinton167225
Unassigned05
Fort Wayne
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Angola
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Decatur
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After a soggy couple of days, the sunshine returns Tuesday and highs top out in the middle 50s.
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