Initial jobless claims as tracked by the US Department of Labor hit 1,434,000 in the week ending July 25th, a jump of 12,000 over the previous week which the department revised up by 6,000. Meanwhile, economic output fell 9.5% in the second quarter, according to the Commerce Department, the worst drop on record, stirring comparisons not to the Great Recession but to the Great Depression.

"The extended unemployment benefits set to expire for millions of the nation's jobless workers will further impact the ailing economy as consumers struggle to pay for goods and services. The businesses that may have been benefiting from those consumers and shoring up neighborhoods may also begin to close at a faster clip," said Andrew Challenger, Senior Vice President of global outplacement and executive and business coaching firm Challenger, Gray & Christmas, Inc.

"Meanwhile, the nation's unemployed who rely on the extended benefits to meet household needs are competing with an unprecedented number of Americans for a limited number of available jobs, especially as cases continue to rise," he added.

"The unemployment claims are following the curve of the virus. Until we get it under control, we'll continue to see record job loss and a faltering economy," said Challenger. 

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Colleen Madden Blumenfeld,
Director of Public Relations
Mobile: 314-807-1568
colleenmadden@challengergray.com