The number of Americans collecting unemployment benefits slid last week, another sign that the job market continues to recover rapidly from the coronavirus recession.
Jobless claims dropped by 24,000 to 400,000 last week, the Labor Department reported Thursday.
The weekly applications have fallen more or less steadily this year — from a peak of 904,000 in early to January. But they remain high by historic standards: Before COVID struck the United States in March 2020, claims were coming in at about 220,000 a week.
The job market and overall economy have been recovering from the collapse of the spring of 2020. The rollout of vaccines this year has encouraged businesses to reopen or expand their hours and sent cooped-up consumers back out to visit restaurants, bars and shops.
Still the health crisis isn't over. COVID-19 cases are ticking up as the highly contagious delta variant spreads among the unvaccinated. The United States is reporting an average of more than 50,000 new cases a day, up from fewer than 12,000 a day in late June. The increase in cases could have economic consequences if governments decide to restrict business activity again or if consumers choose to stay at home as a precaution.
For now, though, the economy is so strong that many businesses say they can't find workers. Employers posted a record 9.2 million job openings in May, advertising vacancies faster than applicants can fill them.
Responding to complaints of a labor shortage, 22 states have decided to end a $300-a-week federal employment benefits meant to cushion the economic fallout from the pandemic. Twenty states have dropped out of two other federal programs -- one of which provides benefits to the self-employed and gig workers and another that serves those who have been out of work for six months or longer. The expanded programs are scheduled to expire nationwide Sept. 6.
Overall, 13.2 million people were receiving some type of jobless aid the week of July 10, down from 31.9 million a year ago.
“Beyond weekly ups and downs, the trend in total filings should remain downward over coming weeks," Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a research report. “ Overall, job growth should pick up and labor shortages should ease as near-term constraints – virus concerns, child-care issues and enhanced unemployment benefits – diminish. But rising virus cases could be a headwind for the labor market and the economy.''
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
As Big Tech reports Q3 earnings, investors await proof that massive AI and cloud investments from Meta, Apple, Microsoft, and Alphabet are driving real growth.
