Jobless Claims Down, But COVID Restrictions Could Slow Economic Recovery

Jobless claims fall to a four-month low, but the U.S. economy still has a long way to go before it can get back to pre-pandemic levels.

The number of initial unemployment claims fell by almost 100,000 in early July to a four-month low. However, the pace of layoffs is still quite high, and businesses are still trying to get back on their feet after a COVID-19 surge in June. Joel Griffith, a research fellow at The Heritage Foundation, says how fast the U.S. can fully recover depends on how many restrictions state and local leaders issue against business owners.

“What I think you will actually see is some parts of the country have a more quick recovery and a more full recovery than other parts of the country," Griffith said.

He says states with the least amount of COVID-19 related restrictions are seeing the fastest economic recovery. Texas Governor Greg Abbott has rejected calls from Democrats like Houston Mayor Sylvester Turner asking for more power to impose restrictions.

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