Unemployment claims are higher than expected, by 200,000

Higher unemployment numbers mean more people out of work and less spending to get our economy back up and running.

Capacity limits, and online?

"* it's a sign the economy is still struggling during the pandemic.

Last week ?

"* nearly one and a half million people filed for unemployment, 200?

"*thousand more than was predicted.

Kimt news 3's nick kruszalnicki is looking into what this could mean for a recovery.

He joins us live from mason city.

Nick?

Yes katie ?

"* the news is a little surprising, considering how states have started to reopen their economies.

But there are a few reasons why people are still losing their jobs and having to stay at home here on the couch.

"it was a surprise to me.

Having it that high, a million and a half new claims."

Economics instructor rayce hardy didn't see it coming either with these higher than expected initial jobless claims. he thinks companies aren't pulling in enough profits from the slow reopening.

"it seems that companies that figured out with the reopening maybe had hopes that things were going to go well for them and it wasn't quite enough for them to be able to make it."

According to hardy, the real measure of how the economy is fairing ?

"* is in the continuig unemployment claims, which is sitting at around twenty million people.

He says the unemployment stimulus might be keeping job seekers at home.

"some of those are just people saying, 'hey, if i can get the extra 600 bucks until july 31st, i'm not going to work that hard at getting a job.'" as more businesses begin to open their doors people who are living paycheck to paycheck might be more careful when it comes to opening their wallets.

Hardy says less spending means less jobs.

"there are some people where that might have been a wakeup call that, 'hey, i better be real careful with my future expenditures here and maybe not make a big purchase.'" belva payton from thornton is aware of the economic woes of the country.

She agrees the economy is still struggling to get back up to speed.

"there's a lot of restaurants and things that still aren't open.

The ethanol plant ?

"* hardy says the economy will continue to struggle judging by the coronavirus flare?

"*ups in states like arizona, texas and florida.

Live in mason city, nick kruszalnicki, kimt news 3.

Thank you nick.

This is the thirteenth consecutive week where weekly unemployment claims have been