U.S. G.D.P. Fell 9.5 Percent: Live Updates

The number of Americans filing new claims for state unemployment benefits totaled 1.43 million last week, the Labor Department reported Thursday.

It was the 19th straight week that the tally exceeded one million, an unheard-of figure before the coronavirus pandemic. And it was the second weekly increase in a row after nearly four months of declines, a sign of how the rebound in cases has undercut the economy’s nascent recovery. Claims for the previous week totaled 1.42 million.

New claims for Pandemic Unemployment Assistance, the government’s program aimed at covering freelancers, the self-employed and other workers not covered by traditional unemployment benefits, totaled 830,000, down from 975,000 the week before. Those numbers, unlike the figures for state claims, are not seasonally adjusted.

“We’re still in a desperate situation,” said Diane Swonk, chief economist at the accounting firm Grant Thornton in Chicago. Noting that weekly claims were in the 200,000 range before the pandemic brought widespread shutdowns in March, she added, “This is unique in terms of the speed and magnitude of the job losses.”

What’s more, fears are growing that after rebounding strongly in May and June, the economy has run out of steam, with many states reversing the reopening of businesses.

“Everyone wants to keep putting on rose-colored glasses, but it’s blinding us to the reality of the situation and what we have to deal with,” Ms. Swonk said.

At the same time, the $600 supplemental weekly unemployment payment from the federal government is ending, a potentially crippling financial blow to millions. Republicans have proposed replacing the supplement with a $200 weekly payment, while Democrats want to extend it in full. “We’re nowhere close to a deal,” Mark Meadows, the White House chief of staff, said Wednesday.

— Nelson D. Schwartz

Article source: https://www.nytimes.com/live/2020/07/30/business/stock-market-today-coronavirus