ALL NEWS

US jobless claims rise to 778,000 as pandemic worsens

Nov 25, 2020, 7:32 AM
FILE - In this March 27, 2020, file photo, a man walks past the Cafe Du Monde restaurant, which was...
FILE - In this March 27, 2020, file photo, a man walks past the Cafe Du Monde restaurant, which was closed but has since reopened, in the French Quarter of New Orleans. President-elect Joe Biden will inherit a mangled U.S. economy, one that never fully healed from the coronavirus and could suffer again as new infections are climbing. The once robust recovery has shown signs of gasping after federal aid lapsed. Ten million remain jobless and more layoffs are becoming permanent. The Federal Reserve found that factory output dropped. (AP Photo/Gerald Herbert, File)
(AP Photo/Gerald Herbert, File)

WASHINGTON (AP) — The number of Americans applying for unemployment benefits rose last week to 778,000, evidence that the U.S. economy and job market remain under strain as coronavirus cases surge and colder weather heighten the risks.

The Labor Department’s report Wednesday said jobless claims climbed from 748,000 the week before. Before the virus struck hard in mid-March, weekly claims typically amounted to roughly 225,000. They shot up to 6.9 million during one week in March before dropping yet remain historically high more than eight months later, with many businesses unable to fully reopen.

The number of people who are continuing to receive traditional unemployment benefits is now 6.1 million, up from fewer than 1.7 million a year ago. Still, that figure had been declining for months. It shows that more Americans are finding jobs and no longer receiving unemployment aid. But it also indicates that many jobless people have used up their state unemployment aid — which typically expires after six months — and have transitioned to a federal extended benefits program that lasts 13 more weeks.

What’s more, the intensifying pandemic is threatening to accelerate the pace of layoffs as more states and localities limit public gatherings and mandate fewer hours and smaller capacities for restaurants, bars and other businesses. Regardless what governments do, many Americans are likely to stay home — and away from local businesses — until they feel safe again.

The Conference Board, a business research group, reported Tuesday that consumer confidence weakened in November, pulled down by lowered expectations for the next six months.

The data firm Womply says that 21% of small businesses were shuttered at the start of this month, reflecting a steady increase from June’s 16% rate. Consumer spending at local businesses is down 27% this month from a year ago, marking a deterioration from a 20% year-over-year drop in October, Womply found.

The heart of the problem is an untamed virus: The number of confirmed infections in the United States has shot up to more than 170,000 a day, from fewer than 35,000 in early September. The arrival of cold weather in much of the country could further worsen the health crisis.

Meanwhile, another economic threat looms: The impending expiration of two federal unemployment programs the day after Christmas could eliminate benefits for 9.1 million people, according to the Century Foundation think tank. Congress has failed for months to agree on any new stimulus aid for jobless individuals and struggling businesses after the expiration of a multi-trillion dollar rescue package it enacted in March.

Most economists warn that without more government aid, the hardships will deepen for jobless individuals and for struggling businesses and states, which would likely have to slash services and jobs.

The expiration of benefits will make it harder for the unemployed to make rent payments, afford food or keep up with utility bills. Most economists agree that because unemployed people tend to quickly spend their benefits, such aid is effective in boosting the economy.

When the viral outbreak struck in early spring, it flattened the economy with stunning speed. Employers slashed 22 million jobs in March and April, sending the unemployment rate rocketing to 14.7%, the highest rate since the Great Depression. Since then, the economy has regained more than 12 million jobs. Yet the nation still has about 10 million fewer jobs than it did before the pandemic erupted.

Today’s Top Stories

All News

The short range missile was fired early Sunday morning local time from the Taechon area of North Py...
Yoonjung Seo, Junko Ogura and Larry Register, CNN

North Korea fires ballistic missile into waters off east coast of Korean peninsula

North Korea has fired a ballistic missile into the waters off the east coast of the Korean peninsula, according to officials in both South Korea and Japan.
1 day ago
Anderson was arrested the morning of Sept. 24, 2022, by West Valley Police on felony child sexual a...
Waverly Golden

First grade teacher in Magna arrested on felony child sexual abuse charges

Elk Run Elementary first grade teacher Dale Anderson was arrested this morning on felony child sexual abuse charges.
1 day ago
The Nephi City Police said in a Facebook post that a man was luring children to his vehicle yesterd...
Waverly Golden

Be on lookout for suspicious vehicle in Nephi

The Nephi City Police said in a Facebook post that a man was luring children to his vehicle yesterday afternoon.
1 day ago
Aaron Fotheringham, aka "Wheelz" from Nitro Circus taught and performed tricks at Wheelchair Palooz...
Waverly Golden

Wheelchair Palooza at Woodward Park City

Aaron Fotheringham, aka "Wheelz" from Nitro Circus taught and performed tricks at Wheelchair Palooza in Park City.
1 day ago
Semi CAX...
Simone Seikaly

Two-vehicle crash involving a semi closes Highway 138 on Friday

A two-vehicle crash involving a fuel truck on Friday morning closed Highway 138 in Tooele County.
1 day ago
WWE Essential...
Zoe Sottile, CNN

John Cena breaks Make-A-Wish record after granting 650 wishes

Actor, wrestling legend, and perpetual meme subject John Cena has completed a new accomplishment: breaking the world record for most wishes granted through the Make-A-Wish Foundation.
1 day ago

Sponsored Articles

a worker with a drill in an orange helmet installs a door in the house...
Price's Guaranteed Doors

Home improvement tip: Increase the value of your home by weatherproofing doors

Make sure your home is comfortable before the winter! Seasonal maintenance keeps your home up to date. Read our tips on weatherproofing doors.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
A paper reading IRS, internal revenue service is pictured...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Prescription opioids can be disposed of during National Prescription Take Back Day...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?
national heart month...
Intermountain Healthcare

National Heart Month: 5 Lifestyle Changes to Make Today to Keep You Heart Healthy

Heart disease is the leading cause of death for both men and women. One person dies every 36 seconds in the United States from cardiovascular disease
US jobless claims rise to 778,000 as pandemic worsens