Rising jobless claims point to economic reversal

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“It is important that we examine how this crisis is having a disparate effect on the African American community, especially black men,” he said.

And while the overall unemployment rate fell in June to 11.1% after peaking at 14.7% in April, worrying weaknesses are growing.

“Rising unemployment will certainly hamper economic recovery, especially if Congress fails to extend the additional benefits that were part of the CARES Act,” said Carl Tannenbaum, chief economist at Northern Trust.

Passed in late March, the legislation created a temporary federal unemployment program, Pandemic Unemployment Assistance, to cover freelancers, part-time workers and others who do not qualify for state unemployment assistance. He extended unemployment benefits for an additional 13 weeks for state beneficiaries who have exhausted their aid allowance. And he helped jobless workers survive the financial crisis by approving a $ 600 weekly benefit – a supplement that essentially expires on Saturday.

This additional money “has provided essential support in recent months,” said Rubeela Farooqi, chief US economist at High Frequency Economics. Such support – even at a reduced level – “will be more and more important in the future,” she said.

Ben Casselman and Tiffany Hsu contributed reporting.

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