US jobless claims worse than expected with 1.48 million new applications for benefits

The new claims brought the total since the business shutdowns began in mid-March to more than 47.2 million

Another 1.48 million Americans filed new claims for unemployment benefits last week, a worse-than-expected figure that showed the continuing potency of the coronavirus pandemic.  AFP

The number of Americans seeking unemployment benefits was higher than forecast for a second straight week, adding to signs that the recovery is cooling amid a pickup in coronavirus cases.

Initial jobless claims in regular state programs fell to 1.48 million last week from an upwardly revised 1.54 million in the prior week, Labor Department data showed Thursday. Continuing claims, a closely watched figure that tracks the overall pool of recipients, declined by more than forecast to 19.5 million in the week ended June 13.

Economists surveyed by Bloomberg News had forecast Thursday’s report to show 1.32 million initial claims and 20 million continuing claims.

US stock futures fluctuated following the data. A separate report Thursday showed orders for durable goods and business equipment jumped in May by more than forecast.

The unemployment claims figures underscore the risks to the recovery from deep labour-market damage across the country.

While states have largely eased restrictions on businesses and some consumer demand has returned to support those jobs, virus cases have been resurgent in many large states and consumer spending remains subdued compared with pre-pandemic levels.

Even so, economists expect continued improvement in the hard-hit labor market; the government’s monthly jobs report next week is projected to show employers added 3 million workers to payrolls in June, following 2.5 million in May.

California had the largest increase in initial jobless claims last week, with a 45,900 rise on an unadjusted basis. Other states with significant increases included Arizona, Florida, Indiana, Maryland, Kansas, New Jersey, Nevada, Pennsylvania and Washington.

Another measure that considers total claims under all programmes — which includes the federal Pandemic Unemployment Assistance programme aimed at self-employed and gig workers — increased to an unadjusted 30.6 million in the week ended June 6. The figure includes 11 million people on PUA benefits, compared with 18.3 million on regular state benefits.

Initial claims under PUA totaled 728,120 in the week ended June 20, down from 770,920 the prior week.

Commerce Department figures on Thursday showed US orders for durable goods jumped 15.8 per cent in May, the most in nearly six years as nationwide reopenings rekindled demand for a broad range of merchandise and equipment.