Pedestrians walk past a couple of closed restaurants on Restaurant Row, Sunday, Jan. 10, 2021, in the Hell's Kitchen neighborhood of New York. (AP Photo/Mary Altaffer)
By Christopher Rugaber
The number of people seeking unemployment aid soared last week to 965,000, the most since late August and evidence that the resurgent virus has caused a spike in layoffs.
The latest figures for jobless claims, issued Thursday by the Labor Department, remain at levels never seen until the virus struck. Before the pandemic, weekly applications typically numbered around 225,000. Last spring, after nationwide shutdowns took effect, applications for jobless benefits spiked to nearly 7 million — 10 times the previous record high. After declining over the summer, weekly claims have been stuck above 700,000 since September.
The high pace of layoffs coincides with an economy that has faltered as consumers have avoided traveling, shopping and eating out in the face of soaring viral caseloads. More than 4,300 deaths were reported Tuesday, another record high. Shutdowns of restaurants, bars and other venues where people gather in California, New York and other states have likely forced up layoffs.
Some states and cities are resisting shutdowns, partly out of fear of the economic consequences but raising the risk of further infections. Minnesota allowed in-person dining to resume this week. Michigan is poised to do the same. Some bars and restaurants in Kansas City are extending their hours.
In addition to the first-time applications for unemployment aid last week, the government said Thursday that 5.3 million Americans are continuing to receive state jobless benefits, up from 5.1 million in the previous week.
Elon Musk’s X has reached a tentative settlement with former employees of the company then known as Twitter who’d sued for $500 million in severance pay.
Federal Reserve governor Lisa Cook late Wednesday said she wouldn’t leave her post after Trump on social media called on her to resign over an accusation from one his officials that she committed mortgage fraud.
Explore how Guident’s cutting-edge software is shaping the future of autonomous vehicles with CEO Harald Braun. Safety, control & AI at the wheel of innovation.
Wondercraft co-founder Oskar Serrander discusses the booming AI audio industry, deepfake risks, and the growing market for synthetic, AI-generated content.
Comerica’s Chief Economist Bill Adams unpacks U.S. retail sales, job growth, and the resurgence of market volatility—and what it all signals for the economy.
Saar Yoskovitz, CEO of Augury, shares how the company delivers AI infrastructure that Fortune 500s rely on to boost efficiency, reliability, and scale.
