881,000 jobless claims last week: Some expect number to rise again

U.S. jobless claims fell to 881,000 new claims last week.

It's the second time we've seen fewer than a million new claims a week since march.

However, layoffs around the country remain elevated.

U.S. JOBLESS CLAIMS FELL TO881-THOUSAND NEW CLAIMS LASTWEEK.IT'S THE SECOND TIME WE'VE SEENFEWER THAN A MILLION NEW CLAIMSA WEEK SINCEMARCH.HOWEVER, LAYOFFS AROUND THECOUNTRY REMAIN ELEVATED.

INFACT, ALICIA NIEVES SHOWS USSOME ARE SUGGESTING THATUNEMPLOYMENTNUMBERS ARE ABOUT TO GO BACK UPAS MORE PEOPLE ARE EXPECTED TOLOSE THEIR JOBS FOR A SECONDTIME.THE UNITED STATES IS AT THEBEGINNING OF A SECOND WAVE OFSIGNIFICANT JOB LOSS."WE ARE SEEING A RESURGENCE INLAYOFFS THAT HAS BEEN QUITECLEARLY INDICATED IN THELAST COUPLE OF WEEKS."DANIEL ALPERT IS A PROFESSOR ANDSENIOR FELLOW AT CORNELLUNIVERSITYCORNELL JUST PUBLISHED A STUDYSHOWING ABOUT A THIRD OF THEPEOPLE WHO WENT BACK TO WORKDURING THE PANDEMIC HAVE NOWBEEN LAID OFF A SECOND TIME.ANOTHER 26% OF WORKERS HAVE BEENWARNED BY THEIR EMPLOYERS THATFUTURE FURLOUGHS ANDLAY-OFF MAY SOON COME."THE PROBLEM IS THAT YOU GET ANECHO, SO IF YOU HAVE ARESURGENCE IN LAYOFFS, ADECREASE INSPENDING, THAT CREATES MORECONTRACTION ON THE PART OFBUSINESSES, WHICH CREATES MORELAYOFFS.THE QUESTION IS WHEN CAN YOU PUTA FLOOR UNDER THIS SPIRALINGSITUATION.

IT IS A CLASSICECONOMICSPIRAL."THE CYCLE OF JOB LOSS EVENTUALLYLEADING TO MORE JOB LOSS, SOMEFEAR COULD LEAD TO A THIRDWAVE OF UNEMPLOYMENT IN A FEWMONTHS.EXPERTS LIKE ALPERT BELIEVE THEONLY WAY TO STOP THE CYCLE WOULDBE A VACCINE, OR CONGRESSCOMING TOGETHER ON ANOTHERSTIMULUS THAT PROPS UPHOUSEHOLDS AND BUSINESSES UNTILTHEN."WE ARE VERY CONCERNED ABOUT THECURRENT ROLLERCOASTER EFFECT ONRESUMED LAYOFFS, BUTLONGER-TERM WE ARE REALLY SCAREDABOUT SEEING HUGE NUMBERS, TENSOF MILLIONS OFBUSINESSES VANISH."THE MORE WAVES OF UNEMPLOYMENTWE SEE, THE HIGHER LIKELIHOOD OFTHAT.

I'M ALICIA NIEVESREPORTING.