Another 2.4 million Americans file new claims for unemployment benefits in a week, bringing COVID-19 jobless total to more than 38.6 million

• At least 2.4 million Americans have filed new claims for jobless benefits last week, the Labor Department said on Thursday
• It brings the total number of people out of work during coronavirus pandemic to more than 38.6 million
• An additional 2.2 million people sought aid under a new federal program for self-employed, contractor and gig workers under new federal program
• These figures weren't included in overall number of weekly jobless applications
• Economists had been predicting that the latest weekly jobless figures would bring the total to 40 million claims over the past two months 
• The pace of layoffs has now declined for six straight weeks and some reopened businesses have already rehired a portion of their laid-off employees
• By historical standards, though, the latest number of weekly applications remains immense 

At least 2.4 million Americans have filed new claims for jobless benefits last week, bringing the total number of people out of work during the coronavirus pandemic to more than 38.6 million.   

The new figure released by the Labor Department on Thursday is the latest wave of layoffs from the viral outbreak that triggered widespread business shutdowns two months ago and sent the economy into a deep recession. 

An additional 2.2 million people sought aid under a new federal program for self-employed, contractor and gig workers, who are now eligible for jobless aid for the first time. These figures aren't adjusted for seasonal variations, so the government doesn't include them in the overall number of applications.  

Economists had been predicting that the latest weekly jobless figures would bring the total to 40 million claims over the past two months. 

The pace of layoffs has now declined for six straight weeks. Claims have been gradually declining since hitting a record 6.867 million in the week ending March 28. 

By historical standards, though, the latest number of weekly applications from the week ending May 15 remains immense.  

At least 2.4 million Americans have filed new claims for jobless benefits in a week, bringing the total number of people out of work during the coronavirus pandemic to more than 38.6 million

The jobless claims report, the most timely data on the economy's health, could offer early clues on how quickly businesses rehire workers as they reopen and on the success of the government's Paycheck Protection Program.  

Stephen Stanley, chief economist at Amherst Pierpont, said the most recent layoffs may be particularly worrisome because they're happening even as states are gradually reopening their economies. 

This could mean that many companies foresee scant likelihood of a substantial economic recovery anytime soon and so still feel a need to cut jobs.

'There's a high probability that those layoffs could persist for longer than those that were a function of (businesses) just being closed,' Stanley said.

At the same time, some companies have begun to rehire a limited number of their laid-off employees as states have eased restrictions on movement and commerce.  

Some economists see tentative signs that economic activity might be starting to recover, if only slightly, now that all the states have moved toward relaxing some restrictions on movement and commerce. 

Last week, the three major US automakers, plus Toyota and Honda, recalled roughly 130,000 of their employees back to factories for the first time since the plants had closed in March - about half the industry's workforce. 

Some auto executives say sales have held up well enough to support the recall of those employees.   

The new figure released by the Labor Department on Thursday is the latest wave of layoffs from the viral outbreak that triggered widespread business shutdowns two months ago and sent the economy into a deep recession

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At least 2.4 million Americans have filed new claims for jobless benefits in a week, bringing the total number of people out of work during the coronavirus pandemic to more than 38.6 million. Pictured are people lining outside an unemployment office in Arkansas last month

In most industries, employees are working more hours than in mid-April, the peak of the virus-related shutdowns nationwide. 

Data from Kronos, a software company that tracks 3 million hourly workers, shows that shifts worked at its 3,000 client companies are up 16% since the week that ended April 12. Still, the shifts are still down a sizable 25% from pre-virus levels.

Even in states that have been reopened the longest, like Georgia, not enough shoppers are visiting stores and restaurants to support significant rehiring according to Kronos executive David Gilbertson.

'Our data is suggesting this recovery is going to take a while,' Gilbertson said. 

The continuing job cuts reflect an economy that is gripped by the worst downturn since the Great Depression. 

The Congressional Budget Office estimates that the economy is shrinking at a 38% annual rate in the April-June quarter. That would be, by far, the worst quarterly contraction on record. 

Nearly half of Americans say that either their incomes have declined or they live with another adult who has lost pay through a job loss or reduced hours, the Census Bureau said in survey data released Wednesday. 

More than one-fifth of Americans said they had little or no confidence in their ability to pay the next month´s rent or mortgage on time, the survey found. 

Last week's claims data covered the week during which the government surveyed establishments for the non farm payrolls portion of May's employment report. 

During April, US employers shed 20 million jobs, eliminating a decade's worth of job growth in a single month. The unemployment rate reached 14.7%, the highest since the Depression. 

Millions of other people who were out of work weren't counted as unemployed because they didn't look for a new job. 

Since then, 10 million more laid-off workers have applied for jobless benefits. 

The April figure is on top of the 881,000 jobs shed in March when businesses were first forced to close due to the pandemic. 

Federal Reserve Chair Jerome Powell said in an interview on Sunday that the unemployment rate could peak in May or June at 20% to 25%. 

The breathtaking downturn - unprecedented in its speed - has turned up the pressure on politicians to lift the lockdowns that are destroying businesses and livelihoods. 

Across industries, major employers continue to announce job cuts. 

Uber said this week that it will lay off 3,000 employees, on top of 3,700 it has already cut, because demand for its ride-hailing services has plummeted. 

Vice, a TV and digital news organization tailored for younger people, announced 155 layoffs globally last week. Digital publishers Quartz and BuzzFeed, magazine giant Conde Nast and the company that owns the business-focused The Economist magazine also announced job cuts last week.