WASHINGTON (AP) — The number of Americans seeking unemployment benefits increased last week to 332,000 from a pandemic low, a sign that the spread of the delta variant may have slightly increased layoffs.
Unemployment aid applications jumped to 4,000 in Louisiana, evidence that Hurricane Ida led to widespread job losses. Ida will likely nick the economy's growth in the coming months, leaving the July-September quarter, though repairs and rebuilding efforts are expected to make up for some of that in the coming months.
Still, Ida shut down oil refineries in Louisiana and Mississippi about two weeks ago and left more than 1 million homes and businesses without electricity. But Ida's impact was limited: Applications for jobless aid fell slightly in Mississippi.
Nationwide, applications for jobless aid rose from 312,000 the week before, the Labor Department said Thursday. That was the lowest level since March 2020. Jobless claims, which generally track the pace of layoffs, have fallen steadily for two months as many employers, struggling to fill jobs, have held onto their workers.
The four-week average of jobless claims, which smooths out fluctuations in the weekly data, dropped for the fifth straight week to just below 336,000. That figure is also the lowest since the pandemic began.
Separately, the Commerce Department reported that retail sales unexpectedly rose 0.7% last month, as Americans kept spending despite the rise in coronavirus cases. But how they spend continues to be skewed by the pandemic. Online shopping jumped in August, but spending at restaurants, bars, and other businesses relying on crowds appears to have become a holding pattern.
In recent weeks, the delta variant has slowed the job market and the broader economy, discouraging many Americans from traveling, staying in hotels, and eating out. Earlier this month, the government reported that employers added just 235,000 jobs in August after adding roughly a million people in June and July.
Hiring in August plummeted in industries that require face-to-face contact with the public, notably restaurants, hotels, and retailers. Still, some jobs were added in other areas, and the unemployment rate dropped to 5.2% from 5.4%.
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