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Unemployment Claims Level Off as New Job Losses Offset by Hiring
Jul 09, 2020 1 min, 37 secs

The number of workers seeking new unemployment benefits has plateaued at a historically high level, showing that many Americans are still losing their jobs amid a broadly healing labor market.

Weekly jobless benefit applications, historically a proxy for layoffs, have held between 1 million and 2 million since late May, and economists expect the figure will remain in that range again for the week ended July 4.

The number of Americans receiving ongoing unemployment benefits has held near 20 million in recent weeks, down from a peak of nearly 25 million in early May, according to the Labor Department.

The leveling of the numbers on unemployment rolls, also known as continuing claims, suggests new layoffs are being offset by hiring and recalling of workers.

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.

D’Angola said she was able to delay her mortgage payments beginning in the spring and is receiving unemployment benefits, including a $600 weekly top up from the federal government.

“When you see the rising number of cases,” he said, “you have to ask to what degree will that tamp down foot traffic and spending, and ultimately employment.”.

Still, some businesses are seeing a marked pick up and are recalling workers this summer.

About two-thirds of those workers were able to apply for unemployment benefits, he said.

The two restaurants reopened a week apart in late May. “I’m going to want to remember those for the rest of my life,” he said of the reopening days.

The bulk of hiring in recent months has come from businesses recalling workers to their former jobs, said Joaquin Alfredo-Angel Rubalcaba, an economist at the University of North Carolina.

Matching unemployed workers to new jobs will be a slower process, Mr.

Firms are likely to face increased costs for employee health benefits and unemployment insurance, and remain uncertain about the path of the economy, he said.

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