FILE - People who lost their jobs are reflected in the door of an Arkansas Workforce Center as they wait in line to file
FILE - People who lost their jobs are reflected in the door of an Arkansas Workforce Center as they wait in line to file for unemployment following an outbreak of the coronavirus disease (COVID-19), in Fort Smith, Arkansas.

WASHINGTON - Applications for unemployment compensation eased again in the U.S. last week, the Labor Department reported Thursday, as some employers started to reopen businesses after the coronavirus pandemic forced their closure.

Even so, another 2.1 million more workers sought cash benefits after being laid off as other businesses curtailed their operations in the face of the continuing threat from the virus and less demand for their products.  

In all, since mid-March, 40.7 million workers have now sought unemployment compensation, nearly a quarter of the U.S. labor force of more than 164 million.  

However, the current actual number of jobless workers is unknown since some who sought unemployment benefits in previous weeks have now been called back to work by their employers. All 50 state governors have begun to ease restrictions on businesses opening in a patch-work array of directives that varies widely throughout the country.

The U.S. death toll from the virus topped 100,000 on Wednesday and health experts predict tens of thousands more will die in the coming months. But President Donald Trump, facing a November re-election contest against former Vice President Joe Biden, is predicting the country will have a robust economic recovery.

“States should open up ASAP,” Trump said on Twitter this week as the stock indexes advanced sharply. “The Transition to Greatness has started, ahead of schedule. There will be ups and downs, but next year will be one of the best ever!"

But the coronavirus has had a major effect on U.S. commerce, with 27 companies already filing for bankruptcy protection in May and some companies announcing they were closing permanently.  

The official April unemployment rate was 14.7%, with Trump economic advisers acknowledging that the May figure, when it is announced in early June, is likely to be 20% or more. They say the rate could remain in double digits on Election Day Nov. 3 and could still be about 10% at the end of 2021.

The government at first said the national economy dropped 4.8% in the first quarter, but that was before the full impact of the pandemic became apparent. It raised the figure to 5% on Thursday and economists expect a further decline in the April-to-June quarter. 

FILE - White House chief economic adviser Larry Kudlow talks to reporters.

Larry Kudlow, director of the White House National Economic Council, told the Washington Post recently that there are some “small glimmers of hope" in the economy. But he also acknowledged the ongoing difficulties the coronavirus pandemic poses to the world’s largest economy.

“Look, it’s really hard to model a virus, a pandemic, the likes of which we have not seen for 100 years,” Kudlow said. “The numbers coming in are not good. In fact, they are downright bad in most cases. But we are seeing some glimmers, perhaps … there’s a lot of heartbreak here. There’s a lot of hardship here. There’s a lot of anxiety here. It’s a very difficult situation."

Numerous states still require social distancing of at least two meters between people in stores and some major retail outlets are requiring their employees and customers to wear face masks. Some governors are limiting restaurants to half capacity.  

But in other states, the restrictions have been significantly lifted and crowds have quickly emerged to resume life, shopping or enjoying a day at Atlantic and Pacific beaches, often ignoring the admonitions of health experts to maintain a safe distance from others or to wear a face mask.

Federal Reserve chair Jerome Powell has warned that the American economy could endure a multi-year recession if more aid is not authorized for workers. He said that 40% of American households earning less than $40,000 a year lost jobs in March.  

But Trump and Republican lawmakers are balking at approving more government assistance until it can be determined how much effect the already-approved funding is helping the economy.  

U.S. workers filing for jobless benefits normally are paid slightly less than half their normal salaries. But these payments are currently being augmented during the pandemic with $600-a-week supplements from the federal government for four months, through July.    

The peak of the unemployment benefit claims likely came in late March with 6.9 million workers filing for the jobless compensation.  

The weekly pace of claims has diminished each of the last 10 weeks since then, but the millions of claims have still been unparalleled over decades of U.S. economic history, reaching back to the Great Depression in the 1930s. The number of claims has far exceeded those made during the Great Recession in 2008-2009.