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| Economic Strain Persists Even as Businesses Reopen | Economic Strain Persists Even as Businesses Reopen |
| (about 20 hours later) | |
| Employers continue to lay workers off while states struggle through a backlog of unemployment claims, a sign of the persistent strain the economy faces from the coronavirus pandemic even as businesses begin to reopen. | Employers continue to lay workers off while states struggle through a backlog of unemployment claims, a sign of the persistent strain the economy faces from the coronavirus pandemic even as businesses begin to reopen. |
| The Labor Department reported Thursday that nearly 1.9 million Americans filed new claims for state unemployment benefits last week, continuing the decline from the more than six million who submitted applications in a single week in March but still a remarkably high level. | The Labor Department reported Thursday that nearly 1.9 million Americans filed new claims for state unemployment benefits last week, continuing the decline from the more than six million who submitted applications in a single week in March but still a remarkably high level. |
| In addition, there were 623,000 new claims for Pandemic Unemployment Assistance, the federal program intended to help the self-employed and others not normally eligible for state jobless benefits. | In addition, there were 623,000 new claims for Pandemic Unemployment Assistance, the federal program intended to help the self-employed and others not normally eligible for state jobless benefits. |
| The overall number collecting state benefits increased by almost 650,000 to a seasonally adjusted total of 21.5 million, showing that even as some businesses reopen and workers come off the rolls, others are being newly laid off or belatedly starting to receive benefits. | The overall number collecting state benefits increased by almost 650,000 to a seasonally adjusted total of 21.5 million, showing that even as some businesses reopen and workers come off the rolls, others are being newly laid off or belatedly starting to receive benefits. |
| Ian Shepherdson, chief economist at Pantheon Macroeconomics, said the weekly claims “are not falling as fast as I’d like them to fall or thought they would be falling.” | Ian Shepherdson, chief economist at Pantheon Macroeconomics, said the weekly claims “are not falling as fast as I’d like them to fall or thought they would be falling.” |
| “Let’s not kid ourselves,” he added. “This is still an astonishing rate of layoffs.” | “Let’s not kid ourselves,” he added. “This is still an astonishing rate of layoffs.” |
| Since mid-March, 42.6 million jobless workers have applied for state aid, marking the worst period for unemployment since the Great Depression. The seasonally adjusted data does not include those who have applied under the Pandemic Unemployment Assistance program. | Since mid-March, 42.6 million jobless workers have applied for state aid, marking the worst period for unemployment since the Great Depression. The seasonally adjusted data does not include those who have applied under the Pandemic Unemployment Assistance program. |
| The government count also leaves out people who were stymied in their attempts to receive the benefits or were too disheartened or confused to try. Mistakes, delays in reporting and possible double-counting in some areas also complicate efforts to arrive at a precise total. | The government count also leaves out people who were stymied in their attempts to receive the benefits or were too disheartened or confused to try. Mistakes, delays in reporting and possible double-counting in some areas also complicate efforts to arrive at a precise total. |
| Some people out of work have gone months without government assistance as states grapple with technical glitches and a flood of claims. Payments have abruptly evaporated for some workers, who have struggled to reach overwhelmed unemployment administrators for an explanation. | Some people out of work have gone months without government assistance as states grapple with technical glitches and a flood of claims. Payments have abruptly evaporated for some workers, who have struggled to reach overwhelmed unemployment administrators for an explanation. |
| Bogus sites that mimic government unemployment portals, and fraudulent claims submitted using stolen personal data, have prompted many states to impose security measures that complicate the approval process. | Bogus sites that mimic government unemployment portals, and fraudulent claims submitted using stolen personal data, have prompted many states to impose security measures that complicate the approval process. |
| Diane Swonk, chief economist at the accounting firm Grant Thornton, said the recent looting and vandalism in many cities further clouded the employment outlook. “The unrest adds insult to injury in an economy already struggling to reopen,” she said. “It could delay workers being called back or cause people to be laid off again.” | Diane Swonk, chief economist at the accounting firm Grant Thornton, said the recent looting and vandalism in many cities further clouded the employment outlook. “The unrest adds insult to injury in an economy already struggling to reopen,” she said. “It could delay workers being called back or cause people to be laid off again.” |
| For many jobless workers, stability remains a distant prospect. On Friday, the Labor Department will report the unemployment rate in May, which many economists say could approach or exceed 20 percent, up from 14.7 percent in April. | For many jobless workers, stability remains a distant prospect. On Friday, the Labor Department will report the unemployment rate in May, which many economists say could approach or exceed 20 percent, up from 14.7 percent in April. |
| The layoffs have grown from the restaurant workers and hotel employees who lost their jobs early in the pandemic to people in management positions, economists said. And state unemployment offices are wading through a backlog of claims, processing older applications that may only now be appearing in official counts. | The layoffs have grown from the restaurant workers and hotel employees who lost their jobs early in the pandemic to people in management positions, economists said. And state unemployment offices are wading through a backlog of claims, processing older applications that may only now be appearing in official counts. |
| The economic rebound will probably unfurl in two phases, said Gregory Daco, chief U.S. economist at Oxford Economics. The first will happen quickly, as companies call back certain employees to help reopen restaurants, retailers and other operations. The second step will drag on for months, as lingering fears of infection and the disruption in earnings weigh on spending and affect the ability of businesses, especially small ones, to return to normal. | The economic rebound will probably unfurl in two phases, said Gregory Daco, chief U.S. economist at Oxford Economics. The first will happen quickly, as companies call back certain employees to help reopen restaurants, retailers and other operations. The second step will drag on for months, as lingering fears of infection and the disruption in earnings weigh on spending and affect the ability of businesses, especially small ones, to return to normal. |
| Mr. Daco said it was encouraging that initial applications for state benefits and for the Pandemic Unemployment Assistance program declined last week, but added that the volume was still stunning and likely to remain elevated. “We’re witnessing a gradual evolution from temporary to persistent labor market damage,” he said. | Mr. Daco said it was encouraging that initial applications for state benefits and for the Pandemic Unemployment Assistance program declined last week, but added that the volume was still stunning and likely to remain elevated. “We’re witnessing a gradual evolution from temporary to persistent labor market damage,” he said. |
| The pandemic has gone on so long that some workers are reaching the end of their allotment of benefits — and some could face more delays as states try to carry out a federal program that offers an extra 13 weeks of aid. | The pandemic has gone on so long that some workers are reaching the end of their allotment of benefits — and some could face more delays as states try to carry out a federal program that offers an extra 13 weeks of aid. |
| “There might be a series of income cliffs coming up as benefits fade out, and tranches of the population that may have helped spur a rebound in spending may drop off,” Mr. Daco said. | “There might be a series of income cliffs coming up as benefits fade out, and tranches of the population that may have helped spur a rebound in spending may drop off,” Mr. Daco said. |
| Unemployed workers in most of the country are eligible for 26 weeks of regular state benefits, which would give someone laid off in mid-March a cushion until September. States like Michigan and Kansas, which usually offer fewer weeks of payments, recently raised their maximum allowances to 26 weeks. But Florida and North Carolina cap their unemployment payouts at 12 weeks. | Unemployed workers in most of the country are eligible for 26 weeks of regular state benefits, which would give someone laid off in mid-March a cushion until September. States like Michigan and Kansas, which usually offer fewer weeks of payments, recently raised their maximum allowances to 26 weeks. But Florida and North Carolina cap their unemployment payouts at 12 weeks. |
| The federal extension program, known as Pandemic Emergency Unemployment Compensation, could give workers a lifeline into December. Some states may offer additional extended benefits. | The federal extension program, known as Pandemic Emergency Unemployment Compensation, could give workers a lifeline into December. Some states may offer additional extended benefits. |
| But Diana Terlingo, 55, has yet to receive any payment. | But Diana Terlingo, 55, has yet to receive any payment. |
| Ms. Terlingo, who was furloughed in mid-April from her job approving travel expenses for a retail chain, said work petered out after employees stopped going on business trips. | Ms. Terlingo, who was furloughed in mid-April from her job approving travel expenses for a retail chain, said work petered out after employees stopped going on business trips. |
| She began working again two weeks ago, operating out of her home in Pembroke Pines, Fla. In the six weeks she was unemployed, she received none of the $5,000 she believes she is owed in state and federal aid. | She began working again two weeks ago, operating out of her home in Pembroke Pines, Fla. In the six weeks she was unemployed, she received none of the $5,000 she believes she is owed in state and federal aid. |
| Her husband, who runs a family business selling modular office furniture that has had no customers for weeks, secured a $16,000 loan through the federal Paycheck Protection Program but did not seek benefits through the state. Their son Sean O’Reilly, 31, was furloughed in mid-March from a hotel restaurant and would be on the verge of exhausting his unemployment payments from Florida if the money had ever arrived. | Her husband, who runs a family business selling modular office furniture that has had no customers for weeks, secured a $16,000 loan through the federal Paycheck Protection Program but did not seek benefits through the state. Their son Sean O’Reilly, 31, was furloughed in mid-March from a hotel restaurant and would be on the verge of exhausting his unemployment payments from Florida if the money had ever arrived. |
| For now, the family has avoided disaster, having saved diligently for years and arranged flexibility with creditors. | For now, the family has avoided disaster, having saved diligently for years and arranged flexibility with creditors. |
| “We’re in a better position than some people,” Ms. Terlingo said. “We’re not the starving ones.” | “We’re in a better position than some people,” Ms. Terlingo said. “We’re not the starving ones.” |
| As businesses reopen, jobless workers are starting to seek in-person help. At job fairs around the country, hospitals are seeking nurses and school districts are looking for bus drivers. CareerSource Florida, a state agency helping job seekers, recently began offering on-site assistance by appointment. Last month, the Alabama Department of Labor set up stations around Montgomery to help people with their claims, but limited the number of visitors and suggested that they bring lawn chairs and snacks to pass the time in line. | As businesses reopen, jobless workers are starting to seek in-person help. At job fairs around the country, hospitals are seeking nurses and school districts are looking for bus drivers. CareerSource Florida, a state agency helping job seekers, recently began offering on-site assistance by appointment. Last month, the Alabama Department of Labor set up stations around Montgomery to help people with their claims, but limited the number of visitors and suggested that they bring lawn chairs and snacks to pass the time in line. |
| The increased activity has led to optimism that the job market has started “crawling out of the hole,” said Torsten Slok, chief economist at Deutsche Bank Securities. “We do have the worst behind us.” | The increased activity has led to optimism that the job market has started “crawling out of the hole,” said Torsten Slok, chief economist at Deutsche Bank Securities. “We do have the worst behind us.” |
| Updated June 5, 2020 | |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| Eric Latham, a 26-year-old restaurant worker living in Fayette, spent days calling the Alabama agency after nearly $1,600 in benefits failed to show up in his account. While updating his unemployment claim one week, he noted that he had briefly worked for his employer for one day during his furlough, a detail that seemed to cut off his payments. | Eric Latham, a 26-year-old restaurant worker living in Fayette, spent days calling the Alabama agency after nearly $1,600 in benefits failed to show up in his account. While updating his unemployment claim one week, he noted that he had briefly worked for his employer for one day during his furlough, a detail that seemed to cut off his payments. |
| “That was two weeks of very little income — that set me back,” he said. “I need it. I have bills. But I’ll probably just have to eat it.” | “That was two weeks of very little income — that set me back,” he said. “I need it. I have bills. But I’ll probably just have to eat it.” |
| Mr. Latham returned to work on Thursday, despite reservations about the coronavirus. Reopening efforts are proceeding slowly, as government officials and business owners try to stave off more infections. | Mr. Latham returned to work on Thursday, despite reservations about the coronavirus. Reopening efforts are proceeding slowly, as government officials and business owners try to stave off more infections. |
| Many workers remain in limbo. | Many workers remain in limbo. |
| Donald Franklin III, 21, was furloughed in March from his manufacturing job in Aliquippa, Pa., 20 miles northwest of Pittsburgh near the Ohio border. He received one unemployment check and has tried in vain to reach the Pennsylvania unemployment office to inquire after the rest of his benefits. | Donald Franklin III, 21, was furloughed in March from his manufacturing job in Aliquippa, Pa., 20 miles northwest of Pittsburgh near the Ohio border. He received one unemployment check and has tried in vain to reach the Pennsylvania unemployment office to inquire after the rest of his benefits. |
| Now home in Ohio, he is worried about having enough money to pay his bills. He received some family money, scaled back his spending and asked for an extension on his internet bill. | Now home in Ohio, he is worried about having enough money to pay his bills. He received some family money, scaled back his spending and asked for an extension on his internet bill. |
| Eager to get back to work, he is hoping for a call from his employer, which has begun restoring shifts. But because Mr. Franklin works nights, he is concerned that rioting could lead to curfews that keep him from traveling to his job. He is also nervous that if the stores that carry his company’s products are looted, demand might tumble. | Eager to get back to work, he is hoping for a call from his employer, which has begun restoring shifts. But because Mr. Franklin works nights, he is concerned that rioting could lead to curfews that keep him from traveling to his job. He is also nervous that if the stores that carry his company’s products are looted, demand might tumble. |
| Mr. Franklin, who is of mixed race, sympathizes with protesters demonstrating against police violence. | Mr. Franklin, who is of mixed race, sympathizes with protesters demonstrating against police violence. |
| “There definitely needs to be a change in the world right now,” he said. “I can definitely see where everyone is coming from. I totally understand all the perspectives. I’m just worried about my livelihood.” | “There definitely needs to be a change in the world right now,” he said. “I can definitely see where everyone is coming from. I totally understand all the perspectives. I’m just worried about my livelihood.” |
| Patricia Cohen contributed reporting. | Patricia Cohen contributed reporting. |