Three straight days of losses on Wall Street after the Labor Department reported new unemployment claims rose to nearly 900,000 last week.
The Greater Houston Partnership's Patrick Jankowski calls it a clear sign layoffs are continuing in spite of Texas and other states reopening more of their economies.
“If this was a normal time, whatever normal is these days, we should only be seeing 220,000 initial claims, maybe 225,000,” he says. “The continued claims actually dropped from 12.6 to 10.1 million. That's not a sign people have gotten jobs. That's a sign of exhausting their state benefits and now they're having to go on federal benefits.”
And he says there's no guarantee typical seasonal jobs will help as we head into the holidays.
“What we've seen historically in a recession is that uptick is not as strong, it's a weak uptick,” says Jankowski. “Yes we'll see some job gains, but not nearly what we need considering the U.S. is still down over 11 million jobs from where we were back in February.”