The U.S. Labor Department received 837,000 initial jobless claims for the week ending September 26, down 36,000 from the previous week.
Continuing unemployment claims as of September 19 were recorded at 11.8 million, reflecting the ongoing economic dislocation caused by the coronavirus pandemic. The latest figures use data released last week for the state of California, which has suspended acceptance of applications while state agencies attempt to revamp their unemployment system.
The Commerce Department on Thursday also stated that consumer spending rose by one percent for the month of August, however personal income fell by 2.7 percent during the same month. Consumer spending is the main driver of the U.S. economy, and it is unclear if spending will continue to rise or hold steady if personal income drops further.
The third economic quarter ended on Wednesday with a growth rate of roughly 30 percent in gross domestic product, the Wall Street Journal reported.
The partial economic recovery of the past few months has not reached pre-pandemic levels, and businesses continue to lay off workers. U.S. airlines American and United announced on Wednesday that they would move ahead with combined planned layoffs of 32,000 workers as Congress remained deadlocked over a potential relief package.
I am extremely sorry we have reached this outcome,” American Airlines CEO Doug Parker wrote in a letter to employees. “It is not what you all deserve.”