1.3 million Americans filed first-time unemployment claims last week

Another 1.3 million people filed for first-time unemployment benefits, the 17th consecutive week with over one million claims. CNN's Christine Romans reports.

Posted: Jul 16, 2020 9:06 AM
Updated: Jul 16, 2020 10:30 AM


It's still not easy to remain employed in the US, nearly four months after the coronavirus pandemic began upending the economy.

Another 1.3 million people filed first-time jobless claims on a seasonally adjusted basis for the week ending July 11, according to the Department of Labor. That's down 10,000 from the prior week's revised level.

On an unadjusted basis, more than 1.5 million people filed first-time claims, up almost 109,000 from the week before. The seasonal adjustments are traditionally used to smooth out the data, but that has tended to have the opposite effect during the pandemic.

Weekly seasonally adjusted first-time unemployment applications have been on the decline for more than three months since their peak in the last week of March. But last week's drop was less than expected.

'Overall, filings remain high and are declining at a stubbornly slow pace,' said Rubeela Farooqi, chief US economist for High Frequency Economics, noting that the risk of mounting permanent job losses is high. 'The pace could slow even further or reverse in coming weeks in response to a surge in virus cases and related closures of businesses.'

Continued claims, which count workers who have filed claims for at least two weeks in a row, stood at more than 17.3 million for the week ending July 4, down 422,000 from the prior week. These seasonally adjusted claims peaked in May at nearly 25 million.

On an unadjusted basis, however, continued claims rose by more than 838,000 to 17.3 million.

This was the first increase in both unadjusted initial and continued claims in several weeks, which concerned some economists.

'The rising UI claims add to the evidence that the recovery may be stalling and come at a critical juncture in the crisis as Covid-19 cases rise around the country and expanded unemployment benefits for Americans are set to expire,' said Glassdoor Senior Economist Daniel Zhao, noting that the additional $600 federal unemployment benefit ends later this month unless Congress opts to extend it.

'The risk of a surprise drop in employment in July is rising, pointing to a roller coaster recovery as the labor market starts to turn down again,' Zhao added.

In addition to those filing for traditional unemployment claims, about 928,500 million people in 47 states filed for first-time pandemic unemployment assistance last week, down almost 118,000 from the week before. And almost 14.3 million people claimed continued pandemic benefits across 48 states for the week ending June 27. That's up nearly 406,000 from the prior week.

The pandemic program was created by Congress in March to respond to the coronavirus outbreak. It provides temporary benefits to workers who typically aren't eligible for payments, including freelancers, independent contractors, the self-employed and certain people affected by the coronavirus. It expires at the end of the year.

Looking at all workers participating in an array of unemployment programs, just over 32 million Americans claimed jobless benefits the week ending June 27, down about 433,000 from the prior week.

That total includes those in the traditional and pandemic unemployment programs, as well as the pandemic emergency unemployment compensation program, which has nearly 936,500 filers. Lawmakers created it in March to provide those who have exhausted their benefits with an additional 13 weeks of payments. It also expires at the end of 2020.

Federal spending on benefits soars

The federal government shelled out more than $80 billion in June to pay for Congress' historic enhancement to the nation's jobless program, bringing the total spent to nearly $171.5 billion this fiscal year, Treasury Department data shows.

In addition to the pandemic unemployment assistance program and the 13-week extension of benefits, lawmakers also boosted weekly benefits by $600, which the jobless receive in addition to their state payments.

States, meanwhile, delivered more than $35 billion in benefits last month, compared to about $4 billion in March. So far, they've spent more than $102 billion this fiscal year, according to the Treasury Department.

All told, government spending on unemployment benefits has soared to nearly $324 billion this fiscal year, as of July 14, with nearly $50 billion spent this month alone.

The crush of filers has taken a toll on states, draining their unemployment trust funds. Eight states have had to borrow a total of nearly $13 billion from the federal government to pay their share of jobless benefits, which typically last 26 weeks. The unemployed are guaranteed to receive their benefits, regardless of whether states have to borrow to pay them.

California had to ask for even more money from the Treasury Department this month after underestimating how much it would need. The Golden State now has authorization to borrow $7 billion this month, up from $4 billion.

More states are likely to turn to the federal government for loans in coming months, said Wayne Vroman, an associate at the Urban Institute. While companies have brought back millions of workers, the unemployment rate in June was 11.1%, the highest since World War II.

'The number of states that will borrow is just going to keep increasing,' Vroman said.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 145465

Reported Deaths: 2491
CountyConfirmedDeaths
Hennepin36126997
Ramsey14966377
Dakota10420139
Anoka9573156
Washington649074
Stearns647850
Scott366636
Olmsted344930
St. Louis333074
Wright282516
Clay259145
Nobles236818
Blue Earth21367
Carver19167
Sherburne189924
Kandiyohi18695
Rice174210
Mower155318
Winona136219
Crow Wing120822
Chisago11912
Benton109012
Lyon10446
Beltrami9839
Otter Tail9808
Waseca95010
Todd9337
Polk8845
Morrison8529
Steele8173
Itasca80617
Douglas8044
Nicollet78318
Freeborn7275
Goodhue68211
Le Sueur6716
Becker6654
Martin63718
McLeod6294
Isanti6196
Pine5960
Watonwan5854
Carlton5372
Chippewa4893
Mille Lacs47118
Hubbard4695
Cass4385
Wabasha4281
Dodge4200
Pipestone37217
Meeker3703
Rock3665
Brown3653
Roseau3650
Redwood31012
Yellow Medicine3096
Murray3023
Cottonwood2990
Renville28613
Fillmore2840
Wadena2743
Sibley2733
Faribault2580
Houston2492
Kanabec23610
Swift2322
Jackson2261
Pennington2221
Aitkin2142
Unassigned20354
Stevens2001
Lincoln1970
Koochiching1775
Pope1740
Big Stone1671
Marshall1611
Wilkin1484
Lac qui Parle1473
Clearwater1431
Norman1410
Lake1390
Mahnomen1342
Grant1094
Red Lake842
Traverse610
Kittson540
Lake of the Woods471
Cook200

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 124963

Reported Deaths: 1700
CountyConfirmedDeaths
Polk20019290
Woodbury753099
Linn6256134
Black Hawk6154102
Johnson610731
Dubuque563959
Scott501843
Story416418
Dallas364047
Pottawattamie343145
Sioux259517
Buena Vista231812
Marshall217136
Webster200915
Plymouth176731
Wapello161062
Clinton159028
Muscatine156058
Cerro Gordo154527
Des Moines153911
Crawford140015
Warren13477
Jasper124034
Carroll123113
Henry11495
Marion109211
Lee103412
Tama102138
Delaware84314
Dickinson8159
Wright7781
Boone7659
Mahaska75125
Bremer7459
Jackson7193
Harrison71217
Washington71212
Benton6782
Lyon5868
Clay5684
Louisa54915
Jones5374
Winnebago52719
Clayton5263
Winneshiek5259
Cedar5217
Hardin5187
Buchanan5155
Kossuth5020
Hamilton4945
Poweshiek49411
Floyd47211
Emmet46221
Cass4563
Iowa45610
Mills4403
Cherokee4342
Page4270
Fayette4224
Guthrie42115
Allamakee4189
Sac4174
Butler4163
Shelby4112
Franklin40118
Humboldt3833
Chickasaw3821
Hancock3796
Madison3783
Clarke3633
Grundy3526
Calhoun3374
Palo Alto3352
Osceola3100
Mitchell3021
Howard2889
Monroe27512
Union2725
Jefferson2671
Taylor2632
Appanoose2583
Monona2562
Pocahontas2532
Ida2312
Fremont2172
Lucas2146
Adair2041
Greene1990
Montgomery1977
Davis1954
Van Buren1942
Keokuk1901
Audubon1831
Decatur1700
Wayne1553
Worth1550
Ringgold1042
Adams841
Unassigned90
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