US unemployment claims rise for second week

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(Bloomberg) – The number of Americans applying for unemployment benefits rose for the second week in a row, a sign that the economic rebound is increasingly at risk, at a time when Congress is about to allow payments to expire additional $ 600.

Initial requests through regular state programs rose to 1.43 million the week ended July 25, 12,000 more than the previous week, a Labor Department report showed Thursday. There were 17 million Americans who applied for continued benefits through those programs in the period ending July 18, 867,000 more than the previous week and the largest increase since early May.

US stock futures held lower after the report, while 10-year Treasury yields declined. Economists in a Bloomberg survey had forecast 1.455 million initial requests. Some projections were as high as 1.6 million.

Almost five months after the pandemic, economic pain continues to be widespread due to the persistent increase in coronavirus infections and the lack of a vaccine to prevent a return to normal in the near future. There are more challenges for Americans if lawmakers allow the $ 600 in additional federal unemployment benefits to end this week. Democrats and Republicans have remained far apart in negotiations on the extent of aid that has supported consumers and businesses.

Another report showed Thursday that the US economy contracted at a record annualized rate of 32.9% in the second quarter, signaling the effects that business closings and job losses are having on the economy. usually.

“Even if the reopening goes well, and many, many people go back to work, it will still take enough time for sectors of the economy that involve many people and in close proximity to recover,” Federal Reserve Chairman said on Wednesday. Jerome Powell after the central bank kept interest rates close to zero. “Those people are going to need support.”

The Labor Department said its seasonal factors had led to an unadjusted decrease of approximately 181,000 initial applications; the count fell by about 171,000. That resulted in a 12,000 increase after the department applied its seasonal adjustment.

The data showed that initial, unadjusted requests fell last week in almost every state. California, the most populous state and epicenter of the virus, experienced an unadjusted decrease of 40,587, while Florida, Georgia, Louisiana, and Texas also reported significant declines.

States with increases include Nevada, New Jersey, Virginia, and Kansas.

The increase in continued applications was concentrated in California and Texas, which reported a combined increase of approximately 576,000, unadjusted. Florida showed a decrease of approximately 122,000.

States reported that 829,697 people applied to the federal pandemic unemployment aid program created for those who are not eligible for regular state programs, including independent contractors and self-employed Americans. That figure was lower than the previous week.

And the total number of unadjusted continuing requests fell to 30.2 million three weeks ago, from 31.8 million. However, this number has reflected an excessive count of applications to the federal pandemic program, as states catch up on backlogs.

Nota Original:U.S. Jobless Claims Rise a Second Week in Sign of Growing Risks

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