WASHINGTON (AP) — The number of people seeking U.S. unemployment benefits fell last week to 709,000, a still-high level but the lowest figure since March and a further sign that the job market might be slowly healing.
Yet the improvement will be put at risk by the sharp resurgence in confirmed viral infections to an all-time high well above 120,000 a day. Cases are rising in 49 states, and deaths are increasing in 39. The nation has now recorded 240,000 virus-related deaths and 10.3 million confirmed infections.
As colder weather sets in and fear of the virus escalates, consumers may turn more cautious about traveling, shopping, dining out and visiting gyms, barber shops and retailers. Companies in many sectors could cut jobs or workers’ hours. In recent days, the virus’ resurgence has triggered tighter restrictions on businesses, mostly restaurants and bars, in a range of states, including Texas, New York, Maryland, and Oregon.
“The risk may be for more layoffs as coronavirus cases surge and some states impose restrictions on activity,” said Nancy Vanden Houten, an economist at the forecasting firm Oxford Economics.
Last week’s count of new applications for unemployment benefits was down from 757,000 the previous week, the Labor Department said Thursday. The still-elevated figure shows that eight months after the pandemic flattened the economy, many employers are still slashing jobs. Read More