The number of unemployment claims in the U.S. fell to 963,000 last week, making it the lowest in a week since March as virus-led lockdowns continue to slow the pace of the country’s economic recovery.
However, the figures showed signs of recovery in the labor market, even as worries that progress has been stalled due to the surge in new COVID-19 cases across several U.S. states in June and July.
The total number of claims decreased to 15.486 million, with the Labor Department adding another 489,000 Americans who applied for Pandemic Unemployment Assistance, a much lower number in contrast to the 656,000 it reported last week.According to a statement by San Francisco Federal Bank President Mary Daly on Wednesday, the economic recovery would be slow and gradual, adding that she was not expecting a V-shaped recovery.
Daly added that any policies that encourages consumers to keep spending during the downturn would help with the recovery process.