July 10, 2020
The number of Americans filing for jobless benefits dropped to a near four-month low last week, Reuters reported. However, a record 32.9 million people collected unemployment checks in the third week of June, supporting expectations that the labor market would take years to recover from the COVID-19 pandemic.
“Don’t be fooled, the economy’s troubles aren’t over yet, not by a long shot,” Chris Rupkey, chief economist at MUFG in New York, told Reuters. “For the labor market it is not the second wave that is holding jobs in suspension, it is the fears of the second wave and even a third wave that is holding the economy back and making the road to recovery an even longer one.”
Initial claims for state unemployment benefits dropped 99,000 to a seasonally-adjusted 1.314 million for the week ended July 4. The 14th straight weekly decline pushed claims to their lowest level since mid-March.
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