Unemployment claims held steady at a historically high 870,000 last week, suggesting the labor market continues to slowly recover from the coronavirus pandemic.
Jobless claims are down significantly from a peak of near 7 million in March but have stagnated at just over 800,000 in recent weeks. That is four times the levels logged before the virus hit this spring, according to Labor Department data.
The high number of claims is a sign that layoffs have continued at a high rate, though many workers are also returning to their previous jobs or finding new ones. Re-employment has contributed to a decline in the number of people collecting unemployment benefits through regular state programs, which cover most workers. So-called continuing claims decreased by 167,000 to about 12.6 million for the week ended Sept. 12.
“We’re continuing to see healing in the labor market, but the pace by which we’re seeing recovery is slowing,” said Kathy Bostjancic, an economist at Oxford Economics.
Though the economy has regained about half of the jobs lost when the pandemic took hold in March and April, hiring has cooled in recent months. Economists expect the initial hiring spurt from business reopenings to ease as state restrictions are lifted at a slower pace than in early summer.
