The number of Americans filing first-time claims for jobless benefits unexpectedly increased last week as a relentless surge in new COVID-19 infections hobbled business operations, offering more evidence that the economy's recovery from the pandemic recession was faltering.
Fred Katayama reports.
More signs the economic recovery is faltering as new COVID-19 cases surge.
The Labor Department reported Thursday the number of Americans filing first-time claims for jobless benefits unexpectedly spiked higher last week to 885,000.
While the claims are well below the record of nearly 7 million in March, they’re still way above their 665,000 peak hit in the Great Recession.
In another sign the recovery was slowing, the Commerce Department reported Wednesday that retail sales fell for a second straight month.
In a press conference this week, Federal Reserve Chair Jerome Powell said the road ahead remained - in his words - “highly uncertain.” “A full economic recovery is unlikely until people are confident that it is safe to engage, re-engage in a broad range of activities.” That’s difficult to achieve as state and local governments announce new restrictions on businesses and consumers stay home, avoiding crowded places like malls and restaurants.
Congress is racing to put out a relief package, but economists say that will not fully offset weaker consumer spending and prevent further layoffs.
The number of Americans filing first-time claims for unemployment benefits unexpectedly fell last week but remain elevated more..
Weekly First-Time Jobless
Claims Surge to 853,000.
The number is much higher than the
730,000 economists had..
