US jobless claims worse than expected despite reopening

Sun Online Desk

19th June, 2020 10:49:34 printer

US jobless claims worse than expected despite reopening

A further 1.5 million Americans filed for unemployment last week, a higher-than-expected number that signals the economic damage caused by the pandemic is continuing.

Although reopening is underway throughout the country, the number of new applications for benefits fell by just 58,000, the Labor Department said.

It was the 13th week in a row the figures have held above one million, BBC reported.

The claims remain more than double the pre-pandemic record set in 1982.

The smaller-than-expected decline in claims last week likely reflects "some moderation" in the pace of reopening, Wells Fargo economics said.

Human suffering

US employers added a surprise 2.5 million jobs last month and the unemployment rate fell to 13.3%, the Labor Department said earlier in its monthly report.

But most analysts expect the US unemployment rate to be above 9% at the end of the year - close to the high set in the aftermath of the 2008 financial crisis.