1.1 million Americans file new jobless claims, lowest since mid-March

With the nation still gripped by an resurgence of coronavirus cases, the U.S. Department of Labor announced Thursday morning that 1.1 million more Americans filed for unemployment last week.

That number is less than the previous week’s number of 1.4 million. The new numbers come as the critical $600 weekly federal jobless payment expires.

The number of jobless claims declined by 249,000 from the previous week, after rising for two straight weeks, and it was the lowest total since mid-March.

This is the 20th straight week that at least 1 million people have sought jobless aid. Before the pandemic hit hard in March, the number of Americans seeking unemployment checks had never surpassed 700,000 in a week, not even during the Great Recession of 2007-2009.

COMPLETE COVERAGE: CORONAVIRUS

Rubeela Farooqi, chief U.S. economist at High Frequency Economics, called the drop in weekly claims “a move in the right direction.’' But in a research note, she added:

“Repeated shutdowns for virus containment remain a threat to the labor market, which is already weak. The possibility of mounting layoffs that could become permanent is high. Without effective virus containment, the recovery remains at risk from ongoing job losses that could further restrain incomes and spending.‘'

On Friday, the government is expected to report a sizable job gain for July, 1.6 million. But even that expected gain would mean that barely 40% of the jobs lost to the coronavirus have been recovered.

All told, 16.1 million people are collecting traditional unemployment benefits from their state. For months, the unemployed had also been receiving the $600 a week in federal jobless aid on top of their state benefit. But the federal payment expired last week. Congress is engaged in prolonged negotiations over renewing the federal benefit, which would likely be extended at a reduced level.

Last week, an additional 656,000 people applied for jobless aid under a program that has extended eligibility for the first time to self-employed and gig workers. That figure isn’t adjusted for seasonal trends, so it’s reported separately.

The Labor Department said Thursday a total of 31.3 million people are now receiving some form of unemployment benefits, though the figure may be inflated by double-counting by some states.

The latest string of layoffs follows the expiration of a $600 weekly federal jobless payment that provided critical support for many of the unemployed. Members of Congress are locked in prolonged negotiations over a new rescue aid package that might extend that unemployment benefit, though likely at a lower level of payment.

The Associated Press contributed to this report.