Businesses are open, but more unemployed file for help in Florida after two-week drop
Initial unemployment claims in Florida climbed the past week to more than 93,000, suggesting a full economic recovery remains out of reach.
The latest figure of 93,394 for the week ending June 20 from the U.S. Department of Labor, reported Thursday, is an increase of 5,246 from the prior week’s figure of 88,148. The figure had been falling for two weeks in a row.
In addition, Florida’s count of continuing jobless claims, or those who have remained on unemployment for at least two consecutive weeks, climbed week on week from 920,202 to 965,117.
Overall, nearly 1.5 million new unemployment claims were filed in the U.S. last week, representing the 14th consecutive week that new claims topped 1 million.
A total of 19.5 million Americans are now collecting state benefits.
The state and federal data represent the claims for unemployment assistance from individuals who have lost their jobs.
Last Friday, Florida reported a better-than-expected monthly jobs report, showing it added more than 182,000 jobs in May — a sign that phased reopenings seemed to be helping reignite the state’s economy.
But despite those reopening initiatives, layoffs have continued, especially in the travel and hospitality sector. For instance, on June 15, the Hyatt Regency in downtown Miami announced an extension of its layoffs beyond six months, affecting 209 employees. Meanwhile, two different Marriott hotels in Miami-Dade announced layoffs totaling more than 260.
Amid surging virus cases, there are now questions about whether the initial signs of a recovery will prove short-lived. New data from restaurant reservation provider OpenTable, for instance, shows a brief surge in table requests in states like Florida that have seen coronavirus flare-ups. But they have crashed back down to levels seen at the beginning of June.
“Following a strong first phase of recovery — one in which robust growth data from depressed levels give the false impression of an immediate return to pre-COVID economic dynamism — the economy appears to be entering the slower, second phase of recovery,” said Greg Daco, chief U.S. economist at Oxford Economics in a note published Wednesday.
In an interview with Bloomberg, Bank of America economist Michelle Meyer agreed.
“We’re now starting to see very early evidence that things are leveling off” in some of the states that reopened first and are now suffering rising virus cases, she said.
Cruise operators have extended sailing cancellations into September, and a petition is now circulating asking Disney to postpone its Florida reopening; the company just announced it would do so in California.
This story was originally published June 25, 2020 at 8:58 AM.
