Initial claims for state unemployment benefits totaled a
seasonally adjusted 963,000 for the week ended Aug. 8, compared
to 1.191 million in the prior week, the Labor Department said on
Thursday. That was the lowest level since mid-March when
authorities started shutting down non-essential business to slow
the spread of coronavirus. Economists polled by Reuters had
forecast 1.12 million applications in the latest week.
The extra unemployment benefit lapsed on July 31. President
Donald Trump on Saturday signed an executive order, including
extending the supplement, though he reduced the weekly payout to
$400. But there has been confusion over the order.
States are required to cover $100 of the benefits, but governors
have indicated they don't have the financial capacity after
revenues were decimated in the fight against the COVOD-19
pandemic. The remaining $300 will be funded from a limited
emergency disaster relief program, which economists estimated
could be depleted as early as September.
White House Economic Adviser Larry Kudlow said on Thursday
Trump's plan would provide an extra $300 per week. Industry
groups and Republicans claimed that the $600 weekly supplement
was encouraging some unemployed people to stay at home.
Many economists rejected the argument and credited the
supplement for the economy's nascent recovery from a recession
triggered by the coronavirus. A government-funded program
offering businesses loans to help with wages has also lapsed.
New COVID-19 infections are spreading across the nation, forcing
authorities in some of the hot spots to either shut down
businesses again or pause reopenings.
Data from Homebase, a payroll scheduling and tracking company,
showed a decline in employment last week. Figures from Kronos, a
workforce management software company, showed a flattening in
the number of shifts worked.
Claims peaked at a record 6.867 million in late March.
Thursday's claims report also showed the number of people
receiving benefits after an initial week of aid totaled 15.486
million in the week ending August 1, compared with 16.09 million
in the prior week.
The government reported last week that the economy created
1.763 million jobs in July after adding a record 4.791 million
in June. It has regained only 9.3 million of 22 million jobs
lost between February and April.
(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
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