A hiring sign shows outside of Gray M. Sanborn Elementary School in Palatine, Ill., Thursday, Nov. 5, 2020. (AP Photo/Nam Y. Huh)
By Martin Crutsinger
The number of Americans seeking unemployment benefits fell by 19,000 last week to still historically high 787,000 as a resurgent coronavirus grips the U.S. economy.
While at the lowest level in four weeks, the new figures released Thursday by the Labor Department are nearly four times higher than last year at this point before the coronavirus struck. Employers continue to cut jobs as rising coronavirus infections keep many people at home and state and local governments re-impose restrictions.
Jobless claims were running around 225,000 a week before the pandemic struck with force last March, causing weekly jobless claims to surge to a high of 6.9 million in late March as efforts to contain the virus sent the economy into a deep recession.
The government said that the total number of people receiving traditional unemployment benefits fell by 103,000 to 5.2 million for the week ending Dec. 19, compared with the previous week.
The four-week average for claims which smooths out weekly variations rose last week to 836,750, an increase of 17,750 from the previous week.
Economists believe that the holidays, in addition to broad confusion over the status of a Covid-19 relief package, suppressed applications for benefits last week.
Congress finally passed a $900 billion relief bill that would boost benefit payments and extend two unemployment assistance programs tied to job losses from the pandemic. However, President Donald Trump called the measure a “disgrace” because in his view it did not provide enough in direct payments to individuals.
Trump eventually signed the measure on Sunday but sought to pressure Congress to boost the stimulus payments to individuals from the $600 in the bill to $2,000. The Democratic-controlled House quickly passed legislation to meet Trump's demand, but the Republican-led Senate checked that momentum.
Senate Majority Leader Mitch McConnell said Wednesday that the proposal to boost payments to $2,000 has “no realistic path to quickly pass the Senate.”
Meanwhile, the government has begun sending out the smaller payments to millions of Americans. The $600 payment is going to individuals with incomes up to $75,000.
Analysts believe the $900 billion package as it now stands will give the economy a boost, but only as long there are no major problems with the rollout of COVID-19 vaccinations.
Earlier this month, Trump administration officials said they planned to have 20 million doses of the vaccine distributed by the end of the year. But according to data provided by the Centers for Disease Control, just over 11.4 million doses have been distributed and only 2.1 million people have received their first dose.
President Donald Trump deflected criticism about the pace of the vaccine program, saying that it's “up to the States to distribute the vaccines.”
Most economists believe the U.S. economy will rebound at some point next year.
“While prospects for the economy later in 2021 are upbeat, the economy and labor market will have to navigate some difficult terrain between now and then and we expect (jobless) claims to remain elevated,” said Nancy Vanden Houten, lead U.S. economist at Oxford Economics.
Updated on December 31, 2020, at 11:12 a.m. ET with the latest details.
U.S. stocks close Tuesday at session highs after a subpar start to the trading day. Tim Chubb, Chief Investment Officer at the wealth advisory firm, Girard, joins Cheddar News' Closing Bell to discuss. 'We're starting to see the moderation of three core things -- we've seen the moderation of prices, we've seen the moderation of wage growth we've seen in the labor market, and we've also seen a moderation of job openings,' he says.
The victims from the USA gymnastics sexual abuse scandal continue to seek justice. Survivors of Larry Nassar are seeking more than one-billion dollars from the FBI for failing to stop the convicted sports doctor when the agency first received allegations. According to a report released by the Justice Department's Inspector General, FBI agents knew
in July of 2015 that Nassar was accused of abusing gymnasts; however, Nassar wasn't arrested until December of 2016. The group that filed the claim includes Olympic medalist Simone Biles and around 90 other women. Louise Radnofsky, sports reporter at The Wall Street Journal, joins Cheddar News' Closing Bell to discuss.
A controversial professional golf tour backed by Saudi Arabia tees off on Thursday. Today, two-time Major winner Dustin Johnson announced he's resigned from the PGA Tour ahead of headlining the Saudi-backed tour, called the LIV Golf Invitation Series. The announcement comes as the PGA tour has threatened disciplinary action for its golfers who take part in the Saudi golf league event, which will also feature notable golf stars like Phil Mickelson and Sergio Garcia; however, LIV Golf's CEO, Greg Norman, told The Washington Post that Tiger Woods rejected a contract worth 'high nine digits' to play in the tour. Chris Bumbaca, reporter for USA Today Sports, joins Cheddar News' Closing Bell to discuss.
CreditCards.com senior industry analyst Ted Rossman compares the Apple Pay Later offering to similar four-step processes at Affirm and Klarna, and says this is a way for the tech giant to dive deeper into the financial industry.
Tech analyst Rene Ritchie discusses new EU legislation that will force iPhones to use a USB-C charger in fall 2024 and what that means for Apple's strategy in Europe.
Catching you up on the stories you need to know this morning, mass shooting victims testify on Capitol Hill, the White House outlines its plan to vaccinate kids younger than five years old, and we break down how to protect yourself from monkeypox.
There are now over 1,000 plant-based restaurants in the U.S. It's clear that people are hungry for vegan alternatives at restaurants nationwide. However, when it comes to pizza, vegan options don't have the best reputation. NUMU Food Group is looking to change that with its brand new vegan mozzarella. Mike Pytlinski, CEO of NUMU Food Group, joins Cheddar News to discuss.
Tattoo artist Katrina "Kat Tat" Jackson, famous for starring in the VH1 hit series "Black Ink Crew: Chicago," is also the first Black woman to own a tattoo shop in Beverly Hills. She joined Cheddar News to discuss her trailblazing work, the stigma BIPOC tattoo artists face in the industry, and the way the space has changed for artists of color since her start. "In the beginning, I remember walking into a tattoo shop just like, hey, I wanna learn, I wanna be a tattoo artist and kind of just being laughed at, not taken seriously," she said. "Even with the tattoo conventions, a lot of African American tattoo artists were almost scared to go to conventions because it's not a welcoming environment."
