1.3 Million New Unemployment Applications Filed
Last week, 1.3 million first-time unemployment applications were submitted after 17 straight weeks of job losses in the millions, further damaging the nation’s economic recovery.
The data was released on Thursday by the Department of Labor after 40 states experienced an uptick in coronavirus cases complicating a broader nationwide reopening of business.
Meanwhile, the $600 unemployment assistance that has been a lifeline to many families affected by coronavirus layoffs, is set to expire at the end of the month. This comes while many states start to lift rent suspensions, put in place to protect those same families, leaving many homeless.
There have been regions that have seen a rise in hiring and business reopening’s but overall, the economy is still in major distress. Many big companies and small businesses are having a hard time bouncing back and may never be able to reopen.
American Airlines warns that they may have to lay off 20 percent of its workforce as travel demands remain at an all time low. Retailers including JCPenney and PVH also announced layoffs this week.
Nearly have of small business owners say they will be unable to reopen once the stay-at-home orders are lifted, according to a recent LendingTree survey.
“Economists say the pain is likely not over yet. As government aid runs out for businesses who received a loan through the Paycheck Protection Program, more layoffs are expected. And any rise in coronavirus cases will lead to further contraction of the economy as consumer spending shrivels up amid continued — or repeat — shutdowns.” NBC news reported Thursday.
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