Key Highlights
- Last week’s figures for new unemployment benefit claims totaled 837,000, according to the US Department of Labor
- New claims under the Pandemic Unemployment Assistance program specifically targeted at independent contractors, gig workers and part-time employees totaled 650,000
- The US Commerce Department reported that personal income declined -2.7% in August
- This week, United Airlines and American Airlines announced combined furloughs of more than 30,000 workers
- Walt Disney Company announced 28,000 layoffs
Unemployment figures continue to reflect four times the “normal” weekly tally of claims pre-pandemic. This last week’s number of new unemployment benefit claims hit 837,000, according to the US Labor Department. Additionally, new claims for benefits under the Pandemic Unemployment Assistance program designed specifically for independent contractors, gig workers and part-time employees hit 650,000.
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Not yet reflected in the above numbers, American Airlines, United Airlines, Walt Disney Company and Allstate announced new layoffs for an approximate total of 62,000.
Rubeela Farooqu, chief US economist for High Frequency Economics, said, “It’s unclear how many companies can sustain themselves and retain payrolls that support incomes. A solid rebound in job growth is now looking more muted.”
Michelle Meyer, head of US economics with Bank of America, agreed. “Clearly there has been a moderation in the rate of improvement from the early stages (of the COVID-19 pandemic). As we get further away from the initial shock, we have less of a natural catch-up, and we face more residual damage.”
New data from the US Commerce Department reflects July’s end of the $600/week supplement to unemployment benefits…personal income dropped -2.7% in August. Consumers simply have less to spend as businesses such as restaurants and retailers struggle to remain afloat and open.
One “overlooked” demographic group among the pandemic unemployed is Asian Americans. Since having the lowest unemployment rate in the country pre-pandemic, Asian Americans now have one of the highest unemployment rates.
This spike in Asian American unemployment needs recognition. Pre-pandemic, the jobless rate for Asian Americans was 2.8%, the lowest of any demographic group. In May, Asian American unemployment skyrocketed to 15%. It has remained at 10.7% since August.
Only African Americans have a higher jobless rate, now 13%, while the unemployment rate of Latinos now stands at 10.7% and 7.3% for Caucasian Americans.
Thanks to The New York Times and National Public Radio.
Also read: Latest Jobless Claims “Appear” to Drop BUT There’s a Caveat, New Weekly Unemployment Claims Dip Below 1M for First Time in Five Months, New Unemployment Claims Fall Slightly While Layoffs Continue to Take Their Toll
