In this Thursday, May 21, 2020, file photo, a man looks at signs of a closed store due to the coronavirus pandemic, in Niles, Ill. State governments are pushing for help from Congress to fix budget gaps caused by the coronavirus pandemic and economic shutdowns. (AP Photo/Nam Y. Huh, File)
By Paul Wiseman
More than 1.4 million laid-off Americans applied for unemployment benefits last week, further evidence of the devastation the coronavirus outbreak has unleashed on the U.S. economy.
The continuing wave of job cuts is occurring against the backdrop of a spike in virus cases that has led many states to halt plans to reopen businesses and has caused millions of consumers to delay any return to traveling, shopping and other normal economic activity. Those trends have forced many businesses to cut jobs or at least delay hiring.
The Labor Department's report Thursday marked the 19th straight week that more than 1 million people have applied for unemployment benefits. Before the coronavirus hit hard in March, the number of Americans seeking unemployment checks had never exceeded 700,000 in any one week, even during the Great Recession.
All told, 17 million people are collecting traditional jobless benefits, a sign that unemployment checks are keeping many American families afloat financially at a time of big job losses and agonizing economic uncertainty.
The pain could soon intensify: An supplemental $600 in weekly federal unemployment benefits is expiring, and Congress is squabbling about extending the aid, which would probably be done at a reduced level.
A resurgence of cases in the South and the West has forced many bars, restaurants, beauty salons and other businesses to close again or reduce occupancy. Between June 21 and July 19, for example, the percentage of Texas bars that were closed shot up from 25% to 73%; likewise, 75% of California beauty shops were shuttered July 19, up from 40% just a week earlier; according to the data firm Womply.
And many states have imposed restrictions on visitors from states that have reported high levels of virus cases, thereby hurting hotels, airlines and other industries that depend on travel.
The virus and the lockdowns meant to contain it have hammered the American economy: Employers slashed a record 20.8 million jobs in April, restoring about 7.5 million of them in May and June as many states began to reopen their economies.
AP Economics Writer Christopher Rugaber in Washington and Thalia Beaty in New York contributed to this report.
Swedish buy now, pay later company Klarna is making its highly anticipated public debut on the New York Stock Exchange Wednesday, the latest in a run of high-profile initial public offerings this year. The offering priced at $40 Tuesday, above the forecasted range of $35 to $37 a share, valuing the company at more than $15 billion. The valuation easily makes Klarna one of the biggest IPOs so far in 2025, which has been one of the busier years for companies going public. Other popular IPOs so far this year include the design software company Figma and Circle Internet Group, which issues the USDC stablecoin..
Oracle co-founder Larry Ellison wrested the title of the world’s richest man from longtime holder Elon Musk early Wednesday as stock in his software giant rocketed more than a third in a stunning few minutes of trading. That is according to wealth tracker Bloomberg. A college dropout, the 81-year-old Ellison is now worth $393 billion, Bloomberg says, several billion more than Musk, who had been the world’s richest for four years. The switch in the ranking came after a blockbuster earnings report from Oracle. Forbes still has Musk as the richest, however, valuing his private businesses much higher.
Aurimas Sabulis, CEO of Dextall, unveils how AI‑driven prefabricated façades slash design time by 80%, labor by 87%, and accelerate affordable housing delivery.
Online broker Robinhood Markets will join the S&P 500 index Online broker Robinhood Markets will join the S&P 500 index as its stock rides higher on a cryptocurrency wave.
Trump wants interest rates to plummet to make borrowing cheaper and boost growth. Fed chair Jerome Powell and his allies say not so fast, they need to bala