First time unemployment claims jumped 5% last week according to the Department of Labor weekly report, a sign that the spreading coronavirus pandemic continues to wreak havoc on the American economy.
The increasing unemployment numbers also demonstrate a predictable fragility for economic stability for millions of American families, as federal pandemic unemployment programs will expire at the end of the month, leading to about half of those unemployment losing vital income.
“The risk of further job and income loss is high now from business operations being curtailed,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, a forecasting firm, told the Associated Press. “Also, expiration of federal benefits later this year will put renewed strain on household incomes. Overall, the labor market remains under stress.”
The number of new claims is 250% higher than one year ago, and the total number of people receiving some type of unemployment benefit is 14 times higher than it was last year. Currently, more than 20 million people around the country are receiving unemployment.