US jobless claims jump back above 1 million in face of virus

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US jobless claims jump back above 1 million in face of virus
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BREAKING: 1.1 million laid-off workers seek U.S. jobless aid as layoffs remain elevated in the face of virus.

FILE - In this May 7, 2020, file photo, a person looks inside the closed doors of the Pasadena Community Job Center in Pasadena, Calif., during the coronavirus outbreak. President Donald Trump’s plan to offer a stripped-down boost in unemployment benefits to millions of Americans amid the coronavirus outbreak has thus far found little traction among the states, which would be required to pick up a quarter of the cost to deliver the maximum benefit.

The total number of people receiving unemployment aid declined last week from 15.5 million to 14.8 million, the government said Thursday. Those recipients are now receiving far less aid because a $600-a-week federal benefit has expired, which means the unemployed must now get by solely on much smaller aid from their states. The loss of the federal benefit has deepened the struggles for many, including a higher risk of eviction from their homes.

The continuing stream of layoffs comes against the backdrop of a modest recovery from a deep recession and a virus that is still paralyzing much of the economy. Home construction and sales have bounced back. So have auto purchases. But spending on travel, entertainment and many other services remains weak. Small businesses are struggling. And unemployment, at 10.2%, remains elevated.

Including the self-employed and gig workers already receiving benefits, 28 million people are receiving some form of jobless aid, though that figure may include double-counting in some states. That figure is little changed from a week earlier. Some large states, like Texas, Washington, Wisconsin and Georgia, have said they are still considering whether to apply for the $300-a-week federal aid. Others, including California, Pennsylvania and Ohio, have said they will seek it. Just two, South Dakota and Mississippi, won’t apply for the program. South Dakota’s governor says the state doesn’t need it.

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