Coronavirus: 1.9 million more Americans file for unemployment as total claims reach 42m

May figure is ​'an awful number, but not as catastrophic as expected' says analyst

Almost 1.9 million Americans filed for first-time unemployment benefits last week as the total number of claims since mid March reached 42.7 million.

The numbers, while staggering, point towards a continued downward trajectory of filings across the US and suggesting the market may be slowly beginning to recover for the impact of the coronavirus.

The US Department of Labour's latest job report indicates the ninth subsequent decline in applications since the sudden spike amid the peak of the novel coronavirus outbreak in the US.

The sustained fall in applications could indicate that the job collapse triggered by the pandemic may have begun to subside as states across the country begin the gradual re-opening of non-essential businesses.

Mark Zandi, Chief economist at Moody’s Analytics, told NBC News that while the figures for May are “obviously an awful number, but not as catastrophic as expected.”

The slight increase of those receiving jobless aid to 21.5 million also suggests that rehiring is offsetting some of the ongoing layoffs.

Data tracking consumer behaviour is also showing signs that the economy is gradually reviving, as restaurants, stores, and hair salons begin gradual reopening in many areas of the US.

These numbers are little comfort for the millions who have already lost jobs, with unemployment levels in the US having reached the highest rate since the Great Depression amidst the unprecedented coronavirus public health crisis.

Since mid-March, 42.7 million people have applied for unemployment benefits, and the department's job report from April showed payrolls fall by more than 20 million, and unemployment soar to 14.7 per cent.

Notably, not all the individuals who filed for benefits as part of the collective total remain unemployed, as some have been rehired.

Duplication in applications due to confusion over unresponsive state unemployment systems may have also caused slight inflation of the overall total.

The downturn may also be set to be impacted by the country's national unrest due to the death of George Floyd, with rioting having forced some major retailers and small businesses to close across the country.

“That’s going to kick up the claims again,” said Jane Oates, a former Labour Department official.

Additionally, despite the downward trend, there are limits to how much a partial reopening of the economy can restore the US job market, and the latest weekly number still represents more than double the record high recorded before the Covid-19 outbreak.

“What’s really going to move the needle economically is when consumers and businesses feel comfortable re-engaging with the economy the way they did before Covid-19,” Adam Kamins, a senior regional economist at Moody’s Analytics said.

Additional reporting by The Associated Press