UNITED STATES—Last week, over 1 million Americans applied for unemployment benefits. According to the U.S. Labor Department report released on the 27th, the number of people filing for unemployment aid decreased by 98,000 from 1.1 million a week ago.
The number of unemployment claims filed has remained over 1 million every week since late March. An estimated 27 million people are receiving some form of unemployment benefits from the state or federal government.
The number of people collecting traditional jobless benefits has increased by 1.7 million from a year ago to 14.5 million people. In March and April 2020, employers cut more than 22 million jobs.
Up until July 31, Americans who filed for unemployment were receiving their regular state benefits plus an additional $600 per week in federal funds.
After passing the initial financial rescue package in March, Congress has been unable to agree on an additional aid package.
On August 8, President Donald Trump signed an executive order, which 39 states have accepted, applying an additional $100 to $400 in weekly federal grants to state unemployment benefits.
The Gross Domestic Product (GDP) shrank from April through June at an annual rate of 31.7 percent making for the worst quarter on record. This dropped from the initial GDP estimate of 32.9 percent. Corporate profits also decreased by nearly $227 billion this past quarter.
The GDP decreased in all 50 states and the District of Colombia in the first quarter of 2020.
The Federal Reserve Bank of Atlanta predicts the economy will soar back to an annual growth rate of 25.6 percent between July and September.
In her report, “Moving Beyond The Lows. An Uncertain Path Forward,” Rubeela Farooqi, the Chief US Economist at High Frequency Economics noted, “The strength and timing of a rebound remains uncertain […] The Fed has indicated it stands ready to provide as much support as needed. Officials have committed toddling whatever is necessary to address market and economic restraints.”
