U.S. UNEMPLOYMENT CLAIMS ZOOM TO 965,000

The number of people seeking unemployment aid soared last week to 965,000, the most since late August and a sign that the resurgent virus has likely escalated layoffs, Christopher Rugaber reported for Associated Press (AP).

The latest figures for jobless claims, issued Thursday by the Labor Department, remain at levels never seen until the virus struck. Before the pandemic, weekly applications typically numbered around 225,000.

They spiked to nearly 7 million last spring, after nationwide shutdowns took effect. Applications declined over the summer but have been stuck above 700,000 since September.

The high pace of layoffs coincides with an economy that has faltered as consumers have avoided traveling, shopping and eating out in the face of soaring viral caseloads.

More than 4,300 deaths were reported Tuesday, another record high.

Shutdowns of restaurants, bars and other venues where people gather in California, New York and other states have likely forced up layoffs. Some states and cities are resisting shutdowns, partly out of fear of the economic consequences but raising the risk of further infections.

Minnesota allowed in-person dining to resume this week. Michigan is poised to do the same. Some bars and restaurants in Kansas City are extending their hours.

Economists say that once coronavirus vaccines are more widely distributed, a broader recovery should take hold in the second half of the year.

The incoming Biden administration, along with a now fully Democratic-led House and Senate, is also expected to push more rescue aid and spending measures that could accelerate growth.

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