U.S. jobless claims fall at a nearly four-month low; 33 Million Americans file for unemployment benefits

The United States Labor Department reported on Thursday that jobless claims edged down to a near four-month low since last week, while 32.9 Million Americans collected unemployment benefits in the third week of June. The government agency stated that the labor market would take years to recover from the coronavirus pandemic.

According to the released data, even if the initial jobless claims fell this month, it was still the highest level compared to the last recession.

Further declines were expected after states including Florida, Texas, and California delayed reopening plans of businesses amid a surge in new coronavirus cases.

“Don’t be fooled, the economy’s troubles aren’t over yet, not by a long shot. For the labor market, it is not the second wave that is holding jobs in suspension, it is the fears of the second wave and even a third wave that is holding the economy back and making the road to recovery an even longer one,” Mitsubishi UFJ Financial Group’s Chief Economist Chris Rupkey said.