Initial jobless claims fell below a million

Slight recovery in the American labor market: New jobless claims fell within a month. But there is still no talk of normality.

There are signs in the window of a hair salon in Chicago stating that it will be closed due to the corona pandemic.

Dhe number of new weekly jobless claims in the United States remains high in the coronavirus pandemic, but has fallen below the one million mark. In the week up to and including August 29, 881,000 people submitted a new application, as the Department of Labor in Washington announced on Thursday. Compared to the previous week when the number was 1.01 million, that was a decrease of 130,000 new applications.

The new applications reflect the short-term development of the labor market in the world’s largest economy. Before the pandemic, the number had rarely exceeded 100,000 a week. The unemployment rate was most recently at a historically high 10.2 percent for the United States. The persistently high number shows that the corona pandemic continues to stand in the way of a sustainable economic recovery.

The number is also significant because Republicans and Democrats have still not agreed on a replacement for the expired additional federal unemployment benefit of $ 600 a week from a corona relief package in March.

The United States still has not got the pandemic under control. More than 6.1 million infections have already been detected. In the past few days, between 34,000 and almost 48,000 new infections were recorded every day. More than 185,000 people have died so far after being infected with the Sars-CoV-2 pathogen.