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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.

Cases: 578494

Reported Deaths: 9202
CountyCasesDeaths
Marion798821282
Lake43601664
Allen31380537
Hamilton27675303
St. Joseph26409369
Elkhart23873336
Vanderburgh18192211
Tippecanoe16999116
Porter14183158
Johnson14120277
Hendricks13560236
Madison10312209
Vigo10297171
Clark9952128
Monroe8933105
Delaware8638129
LaPorte8589153
Kosciusko777375
Howard7712136
Warrick624990
Hancock621995
Bartholomew616094
Floyd5971105
Wayne5811155
Grant5716108
Dubois533570
Boone523167
Morgan501485
Marshall487084
Henry483262
Cass464959
Noble453956
Dearborn443343
Jackson410145
Shelby394376
Lawrence374172
Clinton359838
Gibson348556
DeKalb333063
Montgomery329150
Knox323339
Harrison317242
Miami305043
Steuben300740
Adams291635
Ripley287145
Wabash286345
Whitley286324
Huntington278757
Putnam278046
Jasper274933
White262038
Daviess255671
Jefferson242738
Fayette239248
Decatur237382
Greene229259
Posey225626
Wells225146
LaGrange222061
Scott212837
Clay212432
Randolph204940
Jennings188635
Sullivan185831
Spencer176917
Fountain175125
Washington170216
Starke169241
Jay160521
Fulton156829
Owen155536
Carroll150115
Orange146333
Rush145618
Vermillion141633
Perry141327
Franklin139333
Parke12718
Tipton126232
Pike111325
Blackford105122
Pulaski93636
Newton87820
Brown84428
Benton83010
Crawford7229
Martin68013
Warren6427
Switzerland6035
Union6033
Ohio4547
Unassigned0372

Ohio Coronavirus Cases

Data is updated nightly.

Cases: 807293

Reported Deaths: 9990
CountyCasesDeaths
Franklin95508704
Cuyahoga80262964
Hamilton59783436
Montgomery40858396
Summit32488697
Lucas29495575
Butler29100225
Stark24048388
Warren18471135
Lorain17563207
Mahoning16430334
Lake14941134
Clermont14703103
Delaware1349574
Licking12353132
Trumbull12096297
Fairfield1184280
Greene11338132
Medina10815164
Clark10334261
Wood9742153
Allen9355126
Miami867373
Portage8628104
Richland8604111
Marion7231112
Tuscarawas6987172
Columbiana6922124
Pickaway689050
Wayne6599162
Muskingum648939
Erie5729117
Hancock529088
Ross518287
Scioto508753
Geauga469955
Darke450589
Ashtabula431467
Union422327
Mercer419485
Lawrence417051
Sandusky413262
Auglaize407059
Shelby404621
Seneca404354
Huron399738
Jefferson391565
Belmont378140
Putnam359370
Washington357039
Athens35469
Madison331128
Knox329022
Ashland322538
Fulton319043
Defiance311476
Crawford306769
Preble306434
Brown289617
Logan284828
Ottawa275534
Clinton272741
Williams265757
Highland255618
Jackson250743
Guernsey234625
Champaign233727
Fayette218929
Morrow21754
Holmes215562
Perry215317
Henry206147
Hardin200932
Coshocton194517
Van Wert193744
Wyandot186948
Gallia186226
Adams160815
Pike160116
Hocking157423
Carroll143216
Paulding137521
Noble116138
Meigs99021
Monroe93827
Harrison8428
Morgan75826
Vinton64013
Unassigned00
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