The US Department of Labor released the latest statistics regarding unemployment claims. The week closed with claims of 2.44 million.
The unemployment numbers also indicated that the total number of continuing claims increased to over 25 million for the first time. [Bloomberg] Continuing claims represent the total number of Americans receiving unemployment benefits.
This brings the total unemployment to 17.2%. The two month figure of job loss due to COVID-19 is essentially the same as the total number of jobs lost during the Great Recession.
A new hope
The total continuing claims did not grow at an equivalent rate with new claims. This indicates that some workers are returning to their jobs and coming off of unemployment insurance.
As the economy reopens, many furloughed employees will likely return to work. The numbers for unemployment have continued to remain in flux during the pandemic season.
Federal Reserve Chairman Jerome Powell made it clear that jobless claims will remain high. Additionally, during a recent interview, he said that full recovery could take until the end of next year.