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Economics

U.S. Jobless Claims Fall While Corporate Cuts Signal More Pain

  • Resurgent virus threatens to keep swelling unemployment rolls
  • Wells Fargo, United planning to lay off thousands of workers
An empty patio is seen at a closed bar in Houston, Texas on June 27.Photographer: Callaghan O'Hare/Bloomberg
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Even with fewer Americans applying for unemployment benefits last week, the labor-market outlook remains bleak.

While initial jobless claims fell by the most in a month, according to Labor Department data Thursday, they’re still double the highest level during the last recession. And further declines are in question after states including Texas and Florida delayed or walked back reopening plans amid a surge in Covid-19 infections.