Biden says U.S. commitment to NATO is ‘unshakeable’

WASHINGTON (Reuters) – President Joe Biden on Friday said the U.S. commitment to the NATO alliance was “unshakeable” and promised to observe the principle that an attack on one member was an attack on all.

His statement was at odds with his predecessor, Donald Trump, who called the 30-member alliance outdated and at one point suggested Washington could withdraw.

“The United States is fully committed to our NATO alliance, and I welcome your growing investment in the military capabilities that enable our shared defenses,” Biden told an online session of the Munich Security Conference.

“An attack on one is an attack on all. That is our unshakeable vow.”

Trump administration officials had publicly hammered, and sought to shame, Germany and other NATO members for not meeting a target of spending 2% of their gross domestic output on defense.

Biden’s comments signaled a different approach – and one sure to be welcomed by European leaders and NATO officials.

“America’s back,” Biden told the security conference after his first virtual meeting with Group of Seven world leaders.

“I know the past few years have strained and tested our transatlantic relationship, but the United States is determined – determined – to re-engage with Europe, to consult with you, to earn back our position of trusted leadership,” he said. Biden said the U.S. military was conducting a comprehensive review of its military posture around the world, but he had lifted orders to withdraw U.S. troops from Germany – another decision by the Trump administration that had shocked allies.

In addition, Biden said he had lifted a cap imposed by the previous administration on the number of U.S. forces that could be based in Germany.

(Reporting by Steve Holland and Andrea Shalal; Editing by Chizu Nomiyama and Howard Goller)

U.S. extends travel restrictions at land borders with Canada, Mexico through March 21

By David Shepardson and Ted Hesson

WASHINGTON (Reuters) – U.S. land borders with Canada and Mexico will remain closed to non-essential travel until at least March 21, the one-year anniversary of the restrictions to address COVID-19 transmission concerns, the U.S. government said Friday.

The new 30-day extension is the first announced under President Joe Biden and comes as the White House has been holding meetings about potentially tightening requirements for crossing at U.S. land borders in North America, officials said.

Canada has shown little interest in lifting the restrictions and recently imposed new COVID-19 testing requirements for some Canadians returning by land crossings.

On Jan. 26, the U.S. government began requiring nearly all international air travelers to get negative COVID-19 test results within three days of travel, but has no similar requirements for land border crossings.

In an executive order issued last month, Biden directed U.S. officials to “immediately commence diplomatic outreach to the governments of Canada and Mexico regarding public health protocols for land ports of entry.”

It added U.S. agencies should submit a plan to Biden within 14 days “to implement appropriate public health measures at land ports of entry.”

“The plan should implement CDC (U.S. Centers for Disease Control and Prevention) guidelines, consistent with applicable law, and take into account the operational considerations relevant to the different populations who enter the United States by land,” it said.

Biden also directed a similar review of sea travel and to “implement appropriate public health measures at sea ports.”

(Reporting by David Shepardson and Ted Hesson, Editing by Franklin Paul and Bill Berkrot)

Iran reacts coolly to U.S. talk offer, demands lifting of sanctions

By Parisa Hafezi

DUBAI (Reuters) – Iran will “immediately reverse” actions in its nuclear program once U.S. sanctions are lifted, its foreign minister said on Friday, reacting coolly to Washington’s initial offer to revive talks with Tehran aimed at restoring the 2015 nuclear deal.

President Joe Biden’s administration said on Thursday it was ready to talk to Iran about both nations returning to the accord, which aimed to prevent Tehran from acquiring nuclear weapons while lifting most international sanctions. Former President Donald Trump left the accord in 2018 and reimposed sanctions on Iran.

Tehran said Washington’s move was not enough to persuade Iran to fully respect the accord.

When sanctions are lifted, “we will then immediately reverse all remedial measures. Simple,” Foreign Minister Mohammad Javad Zarif said on Twitter.

Since Trump ditched the deal, Tehran has breached the accord by rebuilding stockpiles of low-enriched uranium, enriching it to higher levels of fissile purity and installing advanced centrifuges to speed up production.

Tehran and Washington have been at odds over who should make the first step to revive the accord. Iran says the United States must first lift Trump’s sanctions while Washington says Tehran must first return to compliance with the deal.

However, a senior Iranian official told Reuters that Tehran was considering Washington’s offer to talk about the revival of the deal.

“But first they should return to the deal. Then within the framework of the 2015 deal, a mechanism to basically synchronize steps can be discussed,” the official said. “We have never sought nuclear weapons and this is not part of our defense doctrine,” the Iranian official said. “Our message is very clear. Lift all the sanctions and give diplomacy a chance.”

The European Union is working on organizing an informal meeting with all participants of the Iran deal and the United States, which has already signaled willingness to join any gathering, a senior EU official said on Friday.

Adding to pressure for a resolution to the impasse, a law passed by the hardline parliament obliges Tehran on Feb. 23 to cancel the sweeping access given to U.N. inspectors under the deal, limiting their visits to declared nuclear sites only.

The United States and the European parties to the accord have urged Iran to refrain from taking the step, which will complicate Biden’s efforts to restore the pact.

POLITICAL INFIGHTING

“We have to implement the law. The other party must act quickly and lift these unjust and illegal sanctions if they want Tehran to honor the deal,” said the Iranian official.

The IAEA’s short-notice inspections, which can range anywhere beyond Iran’s declared nuclear sites, are mandated under the IAEA’s “Additional Protocol” that Iran agreed to honor under the deal.

While Iran’s demand for a lifting of all U.S. sanctions is unlikely to be met anytime soon, analysts said, Tehran faces a delicate choice about how to respond to Biden’s overture with an upcoming presidential election in June.

With growing discontent at home over economic hardship, the election turnout is seen as a referendum on the clerical establishment — a potential risk for Iran’s rulers. Hardliners, set to win the vote and tighten their grip, have been pushing to squeeze more concessions from Washington for reviving the deal.

Iran’s fragile economy, weakened by U.S. sanctions and coronavirus crisis, has left the ruling elite with few options.

“Hardliners are not against dealing with Washington. But their tactic is to stall any engagement to get more concessions until a hardline president is at the office,” said a senior government official.

Some Iranian hardliners said top authority Supreme Leader Ayatollah Ali Khamenei’s tough stance had forced Washington to cave in. On Wednesday he demanded “action, not words” from the United States if it wants to restore the deal.

“They have reversed some measures … It is a defeat for America … but we are waiting to see whether there will be action on lifting sanctions,” state media quoted Tabriz city’s Friday prayer leader Mohammadali Ale-Hashem as saying.

Biden has said that he will use the revival of the nuclear deal as a springboard to a broader agreement that might restrict Iran’s ballistic missile development and regional activities.

Tehran has ruled out negotiations on wider security issues such as Iran’s missile program.

(Writing by Parisa Hafezi; Editing by William Maclean and Frances Kerry)

U.S. weekly jobless claims unexpectedly rise

WASHINGTON (Reuters) – The number of Americans filing first-time applications for unemployment benefits unexpectedly rose last week, but the labor market is steadily recovering as additional fiscal stimulus and falling COVID-19 cases allow more services businesses to reopen.

Initial claims for state unemployment benefits totaled a seasonally adjusted 861,000 for the week ended Feb. 13, compared to 848,000 in the prior week, the Labor Department said on Thursday. Economists polled by Reuters had forecast 765,000 applications in the latest week.

Part of the increase in claims could be related to the temporary closure of automobile plants beginning last week due to a global semiconductor chip shortage. General Motors announced it would take down production entirely at its Fairfax plant in Kansas City during the week of Feb. 8.

Ford Motor has reduced shifts at its Dearborn truck plant and Kansas City assembly plant.

Claims have dropped from a record 6.867 million last March when the pandemic hit the United States. Though they are stuck above their 665,000 peak during the 2007-09 Great Recession, there is reason to be cautiously optimistic that the labor market recovery will gain traction in the spring.

Coronavirus infections and hospitalization rates have been declining since mid-January. Government data on Wednesday showed retail sales increasing by the most in seven months in January.

In addition, the U.S. Congress is considering President Joe Biden’s massive $1.9 trillion recovery package. That would be on top of nearly $900 billion in additional fiscal stimulus provided by the government at the end of December.

Minutes of the Federal Reserve’s Jan 26-27 policy meeting published on Wednesday showed most Fed officials “anticipated continued progress in vaccinations would lead to a sizable boost in economic activity.”

Last week’s claims data covered the period during which the government surveyed businesses for the nonfarm portion of February’s employment report. Claims, however, have not provided a good signal on job growth because of the economic shock caused by the pandemic.

The economy created 49,000 jobs in January after shedding 227,000 in December, the first drop in payrolls in eight months.

About 12.3 million of the 22.2 million jobs lost during the pandemic have been recovered. The Congressional Budget Office has estimated employment would not return to its pre-pandemic level before 2024.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)

U.S. charges three North Koreans in $1.3 billion hacking spree

By Sarah N. Lynch, Raphael Satter and Mark Hosenball

WASHINGTON (Reuters) – The United States has charged three North Korean computer programmers with a massive hacking spree aimed at stealing more than $1.3 billion in money and cryptocurrency, affecting companies from banks to Hollywood movie studios, the Department of Justice said on Wednesday.

The indictment alleges that Jon Chang Hyok, 31, Kim Il, 27, and Park Jin Hyok, 36, stole money while working for North Korea’s military intelligence services. Park had previously been charged in a complaint unsealed in 2018.

The Justice Department said the hackers were responsible for a wide range of criminal activity and high-profile intrusions, including a retaliatory 2014 attack on Sony Pictures Entertainment for producing “The Interview” movie, which depicted the assassination of North Korea’s leader.

The group is alleged to have targeted staff of AMC Theaters and broken into computers belonging to Mammoth Screen, a U.K. film company that was working on a drama series about North Korea.

The Justice Department also alleged that the trio participated in the creation of the destructive WannaCry 2.0 ransomware – which hit Britain’s National Health Service hard when it was set loose in 2017.

The indictment pins the blame on the hackers for breaking into banks across South and Southeast Asia, Mexico, and Africa by penetrating the financial institutions’ networks and abusing the SWIFT protocol to steal money. They’re also alleged to have deployed malicious applications from March 2018 through September 2020 to target cryptocurrency users.

The overall amount of money stolen by the hackers is not clear because in some cases the thefts were either halted or reversed. But the figures are significant. In one 2016 heist alone – at the Bangladesh Bank – the hackers are alleged to have made off with $81 million.

“North Korea’s operatives, using keyboards rather than guns, stealing digital wallets of cryptocurrency instead of sacks of cash, are the world’s leading 21st century nation-state bank robbers,” U.S. Assistant Attorney General John Demers told a news briefing.

Kristi Johnson, the FBI assistant director in charge for the Los Angeles Field Office, told reporters that the three alleged hackers were believed to be in North Korea. Officials alleged they had been stationed at times in various other countries, including China and Russia.

The North Korean mission to the United Nations in New York did not immediately respond to requests for comment and contact details for the trio could not immediately be found. The Chinese and Russian embassies in Washington also did not immediately reply to requests for comment.

Overall, North Korea has generated an estimated $2 billion using “widespread and increasingly sophisticated” digital intrusions at banks and cryptocurrency exchanges, according to a U.N. report in 2019 by independent experts monitoring international sanctions on Pyongyang.

“According to one member state, the DPRK total theft of virtual assets, from 2019 to November 2020” was approximately $316.4 million, the report said.

Officials said on Wednesday that Ghaleb Alaumary, a Canadian-American citizen, has separately pleaded guilty to laundering some of the alleged hackers’ money. Requests for comment sent to Alaumary’s lawyers were not immediately returned.

Alaumary is slated to be sentenced in June in a federal court in Georgia.

(Reporting by Sarah N. Lynch, Raphael Satter and Mark Hosenball; Editing by Alistair Bell)

Pandemic led to U.S. housing boom, reduced credit card debt, New York Fed says

By Jonnelle Marte

(Reuters) – The coronavirus pandemic changed the way U.S. consumers use credit, as lower interest rates spurred a boom in home buying and refinancing and virus-related shutdowns led to a drop in credit card use and an increase in paying off debt, according to a report released on Wednesday by the New York Federal Reserve.

Total household debt last year increased by $414 billion to $14.56 trillion at the end of December, the New York Fed found in its quarterly household debt and credit report.

“The COVID pandemic and ensuing recession have marked an end to the dynamics in household borrowing that have characterized the expansion since the Great Recession, which included robust growth in auto and student loans, while mortgage and credit card balances grew more slowly,” New York Fed researchers wrote in a supplemental blog post published on Wednesday. “As the pandemic took hold, these dynamics were altered.”

Mortgage balances, which make up the largest share of household debt, grew by $182 billion in 2020 – the largest increase since 2007.

Home buying and refinancing took off last year after the Federal Reserve slashed its key overnight interest rate to near zero to fight the economic fallout from the pandemic, leading to lower mortgage rates. A massive shift to working and learning from home also bolstered the housing market, as some families searched for properties with more living space.

Credit card balances increased by $12 billion in the fourth quarter but balances were still $108 billion lower from a year earlier – the largest yearly decline since the report was launched in 1999.

The year-over-year drop is a sign that many credit card holders reduced spending and used pandemic relief checks to pay down their card balances, researchers said. That is in line with earlier research from the New York Fed that found 35% of direct payments received last year were used to pay down debt.

Meanwhile, auto loan balances increased by $14 billion during the fourth quarter and student loan balances rose by $9 billion, the New York Fed’s latest report showed. In total, all household debt not related to housing – including credit card debt, auto loans, student loans, and other debts – increased by $37 billion during the fourth quarter but was still below pre-pandemic levels seen at the end of 2019.

(Reporting by Jonnelle Marte; Editing by Paul Simao)

Iran says U.S. move to seize oil shipment is ‘act of piracy’

DUBAI (Reuters) – Iran said on Monday that a U.S. move this month to seize a cargo of oil on the grounds that it came from Tehran was an act of piracy, adding that the shipment did not belong to the Iranian government.

Washington filed a lawsuit earlier this month to seize the cargo, alleging that Iran sought to mask the origin of the oil by transferring it to several vessels before it ended up aboard the Liberian-flagged Achilleas tanker destined for China.

Washington said the cargo contravened U.S. terrorism regulations.

“This shipment does not belong to the Iranian government. It belongs to the private sector,” Foreign Ministry spokesman Saeed Khatibzadeh told a weekly news conference.

He did not elaborate on what he meant by the private sector.

The Achilleas last reported its position on Sunday as anchored within the Galveston Offshore Lightering Area, which is outside the U.S. Gulf port of Galveston, Refinitiv ship tracking data showed on Monday.

A U.S. official said last week that Washington had sold more than a million barrels of Iranian fuel seized under its sanctions program last year.

Tensions have mounted between Washington and Tehran since 2018, when former U.S. President Donald Trump abandoned Iran’s 2015 nuclear deal with six major powers and reimposed sanctions on the country.

U.S. President Joe Biden has pledged to revive the nuclear deal if Tehran returns to full compliance with the accord.

“It is very unfortunate that such an act of piracy is happening under the new U.S. administration … a solution should be found to stop such acts of piracy by anyone for any reason,” the spokesman Khatibzadeh added.

(Additional reporting by Jonathan Saul in London; Writing by Parisa Hafezi; Editing by Susan Fenton)

U.S. continues plan to keep Central American migrants at bay

By Laura Gottesdiener, Frank Jack Daniel and Ted Hesson

CIUDAD HIDALGO, Mexico (Reuters) – ​In the days before U.S. President Joe Biden’s inauguration, Mexican soldiers patrolling the banks of the wide Suchiate River found few migrants amid the flow of trade across the water from Guatemala.

The likely explanation lay hundreds of miles to the south, where baton-wielding Guatemalan security forces beat back one the largest U.S.-bound migrant caravans ever assembled, according to a Reuters photographer and other witnesses.

“We’re scared,” Honduran migrant Rosa Alvarez told a reporter by telephone as she fled with many others toward the nearby hills, two young children in tow.

The operation was part of a U.S.-led effort, pursued by past American administrations and accelerated under former President Donald Trump, to pressure first the Mexican and then the Central American governments to halt migration well short of the U.S. border.

Under the Biden administration, the same general strategy is likely to continue, at least for the near term, according to six U.S. and Mexican sources with knowledge of diplomatic discussions.

Biden has been gradually unraveling many Trump-era immigration policies. Yet the new administration has encouraged Mexico and Guatemala to keep up border enforcement in their countries to stem northward migration, according to two Mexican officials and a U.S official, all speaking on condition of anonymity.

Diplomats and experts at immigration think tanks told Reuters that it would be politically expedient for the Biden administration to keep asylum seekers and other migrants from trekking en masse to the country’s southern border, especially as Mexico and the United States are being ravaged by the coronavirus pandemic and seeking to contain its spread.

They also said any rush to the U.S border could hand Biden’s political opponents ammunition to sink the rest of his immigration agenda, which includes providing a pathway to citizenship for immigrants already in the United States and reducing asylum application backlogs.

The Biden administration has not specifically endorsed militarized action, however, and has vowed to treat migrants with dignity.

“They want the relevant countries to have appropriate border controls,” said one former U.S. official familiar with the matter, who also spoke on condition of anonymity. “It doesn’t mean that they hold everyone back and beat back migrants. That’s not the objective here.”

A White House spokesperson declined to comment, referring Reuters to recent public remarks by Roberta Jacobson, a special assistant to the president specializing on the southwest border.

Jacobson told reporters on a recent call that the administration had not talked with Mexico specifically about how it deploys its security forces on its own soil. She added, however, that the two countries’ diplomats, as well as Biden and Mexican President Andrés Manuel López Obrador, had spoken about the need to jointly work on managing migration. She stressed the importance of addressing its root causes such as poverty and corruption.

Two other administration officials, including Juan Gonzalez, the president’s lead adviser on Latin American policy, recently underscored U.S. support for immigration enforcement well south of the U.S. border.

“I need to recognize here the work that (Guatemalan) President (Alejandro) Giammattei has done in managing the migration flows when the caravans started out,” Gonzalez told the El Salvadoran investigative website El Faro after the January crackdown.

The Mexican government has informed the new U.S. administration that it intends to keep current immigration enforcement measures in place because it is in Mexico’s sovereign interest to secure its own borders, one senior Mexican official said, speaking on condition of anonymity.

Biden already faces pressure from leading Republican lawmakers who accuse his administration of undermining immigration enforcement.

The new administration has “sketched out a massive proposal for blanket amnesty that would gut enforcement of American laws while creating huge new incentives for people to rush here illegally at the same time,” Republican Senate Minority Leader Mitch McConnell of Kentucky said on the Senate floor after Biden’s first day in office.

Biden officials have repeatedly pleaded with asylum seekers not to migrate now, stressing that the administration needs time to enact its domestic immigration changes.

At the same time, human rights advocates say leaning on Mexico and Central America to halt mass migration violates people’s rights to seek asylum. It also potentially subjects them to further violence and abuse on their journeys north, they say.

“We’ve seen time and time again that militarized approaches don’t really stop people from leaving,” said Daniella Burgi-Palomino, co-director of the Latin America Working Group, an organization dedicated to influencing U.S. policy.

‘REGIONAL CONTAINMENT’

About 8,000 people, including many women and children, joined January’s migrant caravan shortly before Biden’s inauguration, aiming to arrive in the United States after he took office.

The Trump administration had all but locked down the U.S. southern border and forced some asylum applicants to wait for months in Mexico. It also had prodded Mexican and Central American governments, largely through threats, to confront migrant caravans.

For instance, Mexico in 2019 deployed 20,000 National Guard and soldiers to police its borders to stave off Trump’s threats to impose tariffs on Mexican goods.

Mexico, Guatemala, El Salvador and Honduras coordinated a regional containment strategy ahead of the January caravan, Martin Alonso Borrego, director of Latin America and the Caribbean for Mexico’s foreign ministry, told Reuters.

After a Jan. 11 meeting among the countries, Guatemala declared emergency powers in nearly a third of its states and deployed up to 4,000 soldiers, police officers and air force personnel.

As Biden’s inauguration approached, rumors that a large migrant group was forming in Honduras prompted Mexico to beef up its military presence at its own southern border and send buses to Guatemala to aid in the return of caravan members.

The crackdown in mid-January provided some respite to Mexican troops on the Suchiate River. It also inspired fear among migrants.

Honduran migrant Alvarez and her family spent days in Guatemala’s hills trying to make their way toward the Mexican border. “We’re without money and food,” she said, before Reuters lost touch with her.

In the mid-January confrontation in Guatemala, the Reuters photographer and other witnesses saw a wall of security forces confront hundreds of migrants, beating some and deploying tear gas. Some migrants threw rocks. Guatemalan immigration authorities reported an unspecified number of injuries.

Guatemala’s human rights ombudsman Jordan Rodas said “it was outrageous to see the scenes of how the military brutally received our Honduran brothers and sisters.”

Immigration experts and people familiar with the Biden administration’s thinking say Washington may try to exercise more oversight down the line over how Mexican and Central American authorities conduct border containment operations.

Proponents of greater U.S. immigration control say it would be a mistake to pull back on the Trump-era pressure.

“It’s not clear how effectively Guatemala and Mexico can block them, especially if the numbers get bigger and especially if they are not pressured to do so by Biden,” said Jessica Vaughan, policy director for the Center for Immigration Studies, which favors lower levels of immigration.

(Laura Gottesdiener reported from Ciudad Hidalgo, Mexico, and Mexico City; Frank Jack Daniel from Mexico City, and Ted Hesson from Washington, D.C. Additional reporting by Luis Echeverria in Vado Hondo, Guatemala; Sofía Menchu in Guatemala City, Dave Graham and Lizbeth Diaz in Mexico City, and Mimi Dwyer in Los Angeles. Editing by Julie Marquis)

U.S. labor market struggling, but light at the end of tunnel

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing new applications for unemployment benefits fell slightly last week as the labor market continued to tread water, but a drop in new COVID-19 cases has raised cautious optimism that momentum could pick up by the spring.

The weekly unemployment claims report from the Labor Department on Thursday, the most timely data on the economy’s health, also highlighted labor market scarring, with over 20 million people collecting unemployment checks in late January.

“Claims remain stuck at painfully high levels,” said Robert Frick, corporate economist at Navy Federal Credit Union in Vienna, Virginia. “But we are seeing hopeful signs that claims will begin meaningful declines in the next month or two.”

Initial claims for state unemployment benefits slipped 19,000 to a seasonally adjusted 793,000 for the week ended Feb. 6. Data for the prior week was revised to show 33,000 more claims received than previously reported. Economists polled by Reuters had forecast 757,000 applications for the latest week.

Unadjusted claims decreased 36,534 to 813,145 last week. There were notable jumps in filings in California and Ohio. Including a government-funded program for the self-employed, gig workers and others who do not qualify for the regular state programs, 1.148 million people filed claims last week.

Claims are stuck in the upper end of their 711,000-842,000 band between October and November. They remain above their 665,000 peak during the 2007-2009 Great Recession, though they are below the record 6.867 million reported last March when the pandemic hit the United States.

The labor market recovery has stalled in recent months as the country battled a resurgence in coronavirus infections, which ravaged restaurants and other consumer-facing businesses. The government reported last Friday that the economy created only 49,000 jobs in January after losing 227,000 in December.

Labor market woes strengthen the case for President Joe Biden’s proposed $1.9 trillion recovery package, which is under consideration in the U.S. Congress. The government provided nearly $900 billion in additional pandemic relief in late December. Republican lawmakers are opposing the planned massive fiscal stimulus due to concerns about the swelling national debt.

Stocks on Wall Street were trading higher. The dollar was steady against a basket of currencies. U.S. Treasury prices were mostly lower.

LONG BOUTS OF UNEMPLOYMENT

But there are glimmers of hope on the horizon. Reported new coronavirus cases in the United States dropped 25% last week, the biggest fall since the pandemic hit the nation. Infections have now fallen for four consecutive weeks, according to a Reuters analysis of state and county reports.

Should the trend continue and the distribution of vaccines broaden out, that, together with additional stimulus, could allow more businesses to reopen. There are signs that businesses are testing the waters. Temporary help jobs, a segment normally considered a harbinger of future hiring, jumped in January.

“Temporary and contract jobs are running slightly ahead of where they were the same time a year ago,” said Richard Wahlquist, chief executive officer at the American Staffing Association.

For now, the slack in the labor market remains immense. The claims report showed that people receiving benefits after an initial week of aid fell 145,000 to 4.545 million in the week ended Jan. 30. But the decline in the so-called continuing claims was mostly due to people exhausting their eligibility for benefits, limited to 26 weeks in most states.

At least 4.778 million people were on extended benefits during the week ended Jan. 23, up 1.2 million from the prior period. These benefits, which are funded by the government, will expire in mid-March if Congress does not pass the Biden administration’s relief package.

Another 1.653 million were on a state program for those who have exhausted their initial six months of aid. That meant 6.4 million people have been unemployed for more than six months.

“This is by the far the highest we have seen at any point during this crisis,” said AnnElizabeth Konkel, an economist at Indeed Hiring Lab. “Long-term joblessness is happening right now and is a very real challenge for the recovery.”

About 20.435 million people were receiving benefits under all programs during that period, an increase of 2.6 million from mid-January. The surge partly reflected the extension of government-funded benefits in late December, and underscored the widespread nature of unemployment.

“The unemployed are having a difficult time reentering the labor force, and this highlights the need for additional federal aid,” said Scott Anderson, chief economist at Bank of the West in San Francisco.

The economy has recovered 12.3 million of the 22.2 million jobs lost during the pandemic. The Congressional Budget Office has estimated employment would not return to its pre-pandemic level before 2024.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

65.9 million doses of COVID-19 vaccines delivered, 44.7 million administered: U.S. CDC

(Reuters) – The U.S. Centers for Disease Control and Prevention said it had administered 44,769,970 doses of COVID-19 vaccines in the country as of Wednesday morning and delivered 65,972,575 doses.

The tally of vaccine doses are for both Moderna and Pfizer/BioNTech, vaccines as of 6:00 a.m. ET on Wednesday, the agency said.

According to the tally posted on Tuesday, the agency had administered 43,206,190 doses of the vaccines, and delivered 62,898,775 doses.

The agency said 33,783,384 people had received 1 or more doses while 10,469,514 people have got the second dose as of Wednesday.

A total of 5,176,499 vaccine doses have been administered in long-term care facilities, the agency said.

(Reporting by Vishwadha Chander in Bengaluru; Editing by Ramakrishnan M.)