(STAFF REPORTS/Chewelah Independent)
The most recent jobless report show that Americans filed 1.48 million new claims last week, higher than the initial 1.34 million that Wall Street economists had estimated. The state of California, the United States’ most populated state, accounted for the biggest surge in jobless claims with over a million new claims. The total number of jobless claims in America dropped by 767,000 to 19.52 million.
That’s the first time those receiving jobless benefits dropped below 20 million in two months. A rising number of COVID-19 cases in areas of the country, have both the stock market and economists worried about the future.
“The danger now is that claims rebound in other states where infections are rising rapidly, and people are starting again to stay away from restaurants and malls,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics told CNBC.
This is uncharted waters for the American economy. The United States entered a recession in February before the COVID-19 lockdown with a five percent drop in its GDP. Now economists are predicting a GDP drop in quarter two of the financial year of the mid 30 percentile which be worse than anything that has happened to the United States since World War II.
In late March, new jobless claims hit 6.9 million but have been steadily going down after that.
Stevens County had 91 initial new jobless claims on the week of June 7-13 down from a peak of 748 in late April. The county has a 13.6 percent unemployment rate.