U.S. initial jobless claims for the week ending June 6 were 1,542,000, according to the U.S. Labor Department on Thursday morning.
The latest figures show many Americans are still losing their jobs even as the economy appears to be slowly recovering with more businesses partially reopening.
The latest numbers from the Labor Department marked the 10th consecutive weekly decline in applications for jobless aid since they peaked in mid-March, when the coronavirus hit hard. Still, the pace of layoffs remains historically high.
The total number of people who are receiving unemployment aid fell slightly, a sign that some people who were laid off when restaurants, retail chains and small businesses suddenly shut down have been recalled to work.
Last week, the Bureau of Labor Statistics said the May 2020 unemployment was 13.3%, far lower than the expected 20%. More than 2 million jobs were also added, a positive reading in the midst of a recession that has paralyzed the economy in the wake of the viral pandemic.
Last week’s jobless report also showed a decline in the number of overall filings as more states reopen.
»COMPLETE COVERAGE: CORONAVIRUS
On Wednesday, the Federal Reserve said it will keep buying bonds to maintain low borrowing rates and support the U.S. economy in the midst of a recession. And it says nearly all the Fed’s policymakers foresee no rate hike through 2022.
Fed officials estimate the economy will shrink 6.5% this year, in line with other forecasts, before expanding 5% in 2021. It foresees sees the unemployment rate at 9.3%, near the peak of the last recession, by the end of this year. The rate is now 13.3%.
The Fed has cut its benchmark short-term rate to near zero. Keeping its rate ultra-low for more than two more years could make it easier for consumers and businesses to borrow and spend enough to sustain an economy depressed by business shutdowns and high unemployment.
»MORE: Feds to keep buying bonds, sees no rate hike in 2022
By keeping rates low through at least 2022, the Fed hopes it will be able to steer the economy back to its pre-pandemic shape. The decision to hold rates at near-zero was unanimously agreed upon.
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