London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

US workers seeking jobless aid near 40 million

US workers seeking jobless aid near 40 million

A further 2.4 million Americans sought unemployment benefits last week, despite hopes that easing lockdown restrictions would help restart the US economy.

The new filings brought the total since mid-March to roughly 38.6 million - almost a quarter of the workforce.

The weekly figures have declined since peaking at almost 6.9 million at the end of March but remain high.

The number of people remaining on benefits also continues to grow.

Treasury Secretary Steven Mnuchin warned this week that the US risked "permanent damage" if the lockdowns continued.

All 50 states in the US have started to reopen but it is not clear whether simply easing restrictions will prompt activity to rebound.

In the week ending 16 May, about 2.2 million people sought unemployment benefits under the government's pandemic relief programme, which expanded eligibility to people such as gig economy workers.

Their numbers, which are reported separately from the regular figures, are likely to grow as more states implement the programme.

"This is so tragic it is almost unfathomable," Diane Swonk, chief economist at Grant Thornton, wrote on Twitter.


Employers in the US cut more than 20 million jobs last month, sending the official unemployment rate to 14.7%, a sharp rise from 50-year lows of about 3.5% seen as recently as February.

Economists have warned that the rate is likely to worsen and remain elevated for several years.

While many of the unemployed said they believed their layoffs were temporary, a recent study estimated that more than 40% of recent pandemic job cuts are likely to be permanent.

Companies such as Uber are among the firms that have announced significant job cuts in recent weeks, as they prepare for a prolonged slowdown.

Retailers have also unveiled scores of permanent shop closures, with Victoria's Secret this week saying it would close some 250 locations in North America, with more expected.

"Overall there is little evidence that the reopening of the economy has, as yet, led to any sudden snap back in employment," said Paul Ashworth, chief US economist at Capital Economics.

Nearly half of US households have lost income since the pandemic lockdowns came into effect two months ago, according to a survey published Wednesday by the US Census. About 37% expect to lose income in the next month.

The effect on spending - which powers the US economy - has already been felt, with retail sales falling a record 16.4% in April, the Commerce Department reported last week.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×