U.S. weekly jobless claims drop

The number of Americans seeking unemployment benefits fell below 800,000 last week for the first time since the pandemic hammered the U.S. economy. The Labor Department on Thursday said initial claims totaled 787,000.

But that number remains very high, indicating a slowing recovery and a struggling job market. And economists predict claims will remain high. They point to the resurgence in new coronaviruses cases sweeping the U.S., saying that could lead to restrictions by state and local governments. More people may shun public venues such as restaurants and bars.

Jobless claims have dropped from the record 6.9 million in March, but they remain stuck above the peak during the Great Recession. With funding from the mammoth rescue package earlier this year now depleted, transportation companies and other businesses are laying off or furloughing workers amid subdued demand.

A new package now being negotiated between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin faces opposition in the Senate, so a deal is unlikely before the presidential election.