WASHINGTON–For the first time in nearly four months, filing for weekly unemployment benefits rose again in the latest jobs data released by the Labor Department.
According to the Labor Department, initial unemployment claims rose by a seasonally adjusted 109,000 to 1.4-million for the week ended July 18, bringing to an end what had been a steady descent from a peak of 6.9 million in late March, when the pandemic and business closures shut down parts of the U.S. economy.
The increase followed a period where claims had settled around 1.3 million a week, well above the pre-pandemic record of 695,000 in 1982, noted the Wall Street Journal.
“The data also show that unemployment rolls have shrunk in recent weeks,” the Journal added. “Taken together, claims and benefits totals suggest new layoffs are being offset by hiring and employers recalling workers, though at a slower pace than a few weeks ago.”
Claims Follow New Restrictions
Last week’s increase in unemployment applications came after several states imposed new restrictions on businesses when coronavirus cases rose.
The same data show the number of people receiving benefits through regular state programs, which cover the majority of workers, decreased by 1.1 million to 16.2 million for the week ended July 11. The decline extends the recent trend, with the number receiving benefits the lowest reading since the week ended April 11. Those so-called continuing claims are reported with a week lag. Employers added a combined 7.5 million jobs in May and June after shedding 21 million jobs in March and April, separate Labor Department data showed, according to the Journal analysis.
Mixed Results
On an unadjusted basis, the level of claims was mixed across states last week, falling in some states where virus cases have risen, including in Florida and Texas, and rising in others, including California and Louisiana, the report added.
The elevated level of claims indicate many workers are being laid off, perhaps for a second time, and that parents who want to work are unable to access child care, one analyst suggested.