The number of laid-off workers applying for unemployment benefits has declined, but 1.48 million people have asked for such help in a week. This week marks a 3-month decline and a sign that layoffs are shrinking, but still at a painfully high level.
A steady decline in the number of applications indicates that the labor market began to slowly recover from the crisis from a pandemic that led to the closure of enterprises and raised unemployment to 14.7% in April, the highest since the Great Depression.
However, recent data also coincides with the sudden increase in COVID-19 cases in the United States, especially in the south and west – this threatens to thwart the nascent economic boom.
The number of people receiving unemployment assistance also fell last week, indicating that employers are returning to work those they fired in March.