Unemployment, stock market show positive signs

WASHINGTON—New jobless benefit claims in the United States dropped below 1 million last week for the first time since the beginning of the coronavirus pandemic. The government’s report released on Thursday said unemployment applications fell for the second straight week, and employers laid off fewer workers across the country.

Will the drop in new unemployment applications continue? Some economists think fewer people applied because the extra $600 weekly federal unemployment bonus expired at the end of July. President Donald Trump issued an executive order last week allowing up to $400 in extra benefits weekly while Republicans and Democrats in Congress negotiate a new stimulus package. Thursday’s report, combined with Wall Street’s consistent rally this week, could signal increased economic momentum in the United States.

Dig deeper: Read Sarah Erdős’s report on the international food crisis created by coronavirus lockdowns.