Unemployment claims in California jumped by the largest amount in more than a month, and the state accounted for one-fifth of all the claims filed in the U.S. last week, officials reported Thursday.The latest filings also produced a new figure: During the period of coronavirus-linked shutdowns, nearly 8 million California workers have filed first-time unemployment claims — a grim tally of the ongoing economic fallout.
California workers filed 209,500 initial claims for unemployment benefits during the week that ended on Aug. 22, a sharp increase from the 190,400 workers who filed first-time claims during the week ending on Aug. 15, according to the U.S. Labor Department.
The increase of 19,100 in unemployment claims was the largest one-week increase since the week that ended on July 11, when jobless claims rose by 20,100 in a single week, this news organization’s database of California unemployment claims during 2020 shows.
Since government-imposed business shutdowns to combat the coronavirus began in mid-March, 7.9 million California workers have filed first-time claims for unemployment benefits, the government figures show.
NATIONWIDE
Just over 1 million Americans applied for unemployment benefits last week. The number of people seeking jobless aid dropped by 98,000 from 1.1 million the week before.
The number of initial claims has exceeded 1 million every week but one since late March, an unprecedented streak. Before the coronavirus pandemic, they had never topped 700,000 in a week.
"Layoffs are ongoing reflecting interruptions to activity from virus containment that are likely resulting in permanent closures and job losses,’ Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a research report.
Farooqi added that "the risk of permanent damage to the labor market remains high which will slow the pace of recovery. The return to pre-pandemic levels of prosperity is set to be an uncertain and prolonged process.’
More than 14.5 million are collecting traditional jobless benefits — up from 1.7 million a year ago — a sign that many American families are depending on unemployment checks to keep them afloat.
Until July 31, the unemployed were receiving an extra $600 a week in federal money on top of regular state unemployment benefits, part of an extraordinary lifeline extended to help them through the crisis. The loss of that money is putting the squeeze on many families.
After passing a massive financial rescue package in March, congressional Republicans and Democrats have been unable to agree on more aid. President Donald Trump signed an executive order Aug. 8 offering a stripped-down version of the expanded unemployment benefits. At least 39 states have accepted or said that they would apply for federal grants that let them increase weekly benefits by $300 or $400.
Last week, nearly 608,000 people applied for jobless aid under a new program that extends eligibility for the first time to self-employed and gig workers, up from 525,000 the previous week. That figure isn’t adjusted for seasonal trends, so it’s reported separately.
Altogether, the Labor Department said that 27 million people are receiving some form of unemployment benefits, though the figure may be inflated by double-counting by states.