The number of laid-off workers seeking unemployment benefits remains at 1.3 million, indicating that many companies are still cutting jobs due to the Covid-19 pandemic
A UPS worker makes a delivery of packages along 5th Avenue in midtown Manhattan following Covid-19 outbreak in New York City, New York, US, July 9, 2020.
Rising infections paralleled rising applications for aid in some states getting hit right now, and fell in states with declining infections. “Conditions in the labour market remain weak and the risk of mounting permanent job losses is high, especially If activity continues to be disrupted by repeated virus-related shutdowns,” said Rubeela Farooqi, chief US economist at High Frequency Economics.A separate government report showed that retail sales jumped 7.5 percent in June, a healthy gain that suggested the economy was healing just before the viral resurgence has weighed on hopes for a steady recovery.
Those figures are adjusted for seasonal variations, a practice intended to filter out trends that don't reflect on the economy, such as the firing of seasonal workers after the winter holidays. Yet the impact of the coronavirus has made such adjustments less relevant, economists say, because claims are so far above normal levels.
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