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1.9 million seek jobless aid even as reopenings slow layoffs

Tattoo parlor
A tattoo parlor has its windows boarded up on May 28 in San Diego.
(Sam Hodgson / San Diego Union-Tribune)

Nearly 1.9 million people applied for U.S. unemployment benefits last week, the ninth straight decline since applications spiked in mid-March, a sign that the gradual reopening of businesses has slowed the loss of jobs.

The diminishing pace suggests that the job market meltdown that was triggered by the coronavirus may have bottomed out as more companies call at least some of their former employees back to work.

The total number of people who are now receiving jobless aid rose only slightly to 21.5 million, suggesting that rehiring is offsetting some of the ongoing layoffs.

Though applications for benefits are slowing, the latest weekly number is still more than double the record high that prevailed before the viral outbreak. It shows that there are limits to how much a partial reopening of the economy can restore a depressed job market mired in a recession.

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With all states in the process of gradually reopening for business, more consumers are starting to return to restaurants, stores and hair salons. That trend has boosted consumer spending from exceedingly low levels and has likely encouraged some companies to hire again.

In addition to the laid-off employees who applied for benefits last week, 623,000 others sought jobless aid under a new program for self-employed and gig workers, who now qualify for unemployment benefits for the first time. These figures aren’t adjusted for seasonal variations, so the government doesn’t include them in the overall data.

L.A. is prosecuting more than 70 businesses so far for allegedly flouting COVID-19 rules. The group includes pet groomers, salons and smoke shops.

The figures come one day before the government’s jobs report for May is expected to show that employers slashed 8 million jobs last month and that the unemployment rate jumped from 14.7% to 19.8%. If those forecasts prove accurate, it would mean that nearly 30 million people have lost jobs since the viral outbreak intensified in March and that joblessness has reached its highest point since the Great Depression.

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Since mid-March, 42.7 million people have applied for unemployment benefits. Not all of them are still unemployed, though. Some have since been rehired. And some laid-off people, it turns out, filed duplicate applications for benefits as they struggled with unresponsive state unemployment systems.


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