U.S. initial unemployment claims surge above 1.106 million

The number of initial unemployment claims in the U.S. surged to 1.106 million, mounting on worries over a stalling labor market.

Economists had forecasted a drop to 925,000 after the figure was revised from 963,000 to 971,000 in the previous week. The number of people who claimed for Pandemic Unemployment Assistance for the first time jumped by 53,000, adding up to 543,000. This would indicate a high rate of layoffs, despite the economy being on track for a slow recovery from the COVID-19 pandemic.

However, as of August 1, the number of people claiming unemployment benefits have fallen by around 200,000 to 28.06 million.

The number of new COVID-19 cases in the country has also eased substantially since July, reaching to its lowest since June. Though new cases still average over 40,000 a day, according to data from the Johns Hopkins University.