Another 1.5 million USA workers file for unemployment insurance

Daniel Fowler
June 26, 2020

The latest jobless claims figures from the Labor Department, which covers the week ended June 20, pushes the number of job losses since the shutdown began to around 47 million.

The Department of Labor reported Thursday that 1.5 million Americans filed initial claims for unemployment during the week ending June 20, bringing a 14-week total to about 46.5 million claims.

Economists at the International Monetary Fund on Wednesday predicted a much slower recovery than previously forecast, expecting economic growth in the USA will plummet by 8% in 2020. Those who remain without a job filed 314,744 fewer continued claims compared to the peak in April. These dropped by 767,000 for the week ending June 13, down to almost 19.5 million.

This reading followed the previous week's print of 1,540,000 (revised from 1.508,000) and came in slightly worse than the market expectation of 1,300,000. "Even as the economy is picking up they are not seeing a lot of demand and are deciding that they don't need that many workers".

Stimulus checks sent to more than 1 million dead people
Lawmakers could also consider extending unemployment benefits, more support for small businesses and funding for states and cities.

The seasonally-adjusted insured unemployment rate dropped by half a percentage point to 13.4 percent for the week ending June 13, supporting the view that more businesses are re-hiring furloughed workers. "The highly elevated but declining levels of new and continuing unemployment claims suggest tens of millions of Americans are still in dire straits", Mark Hamrick, a senior economic analyst at Bankrate, said Thursday.

Federal Reserve Chairman Jerome Powell says there will be millions of people who won't return to their jobs.

Labor Department figures showed that the largest increases in initial weekly jobless claims for the week ending June 13 were in Oklahoma (+7,254), Texas (+5,047), New Jersey (+3,272), NY (+1,351), and Louisiana (+1,243).

However, the county's unemployment rate was above the statewide rate.

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