WASHINGTON (AP) — The number of Americans applying for unemployment dropped below 1 million last week for the first time since the coronavirus outbreak took hold in the U.S. five months ago, but layoffs are still running extraordinarily high.

The figures show that the crisis continues to throw people out of work just as the expiration of an extra $600 per week in federal jobless benefits has deepened the hardship for many — and posed another threat to the U.S. economy.

Applications for jobless benefits declined to 963,000, the second straight drop, from 1.2 million the previous week, the government said Thursday. That signals layoffs are slowing, though the weekly figure still far exceeds the pre-outbreak record of just under 700,000, set in 1982.

The virus is blamed for more than 166,000 deaths and 5.2 million confirmed infections in the U.S. — easily the highest totals in the world. The average number of new cases per day is on the rise in eight states, and deaths per day are climbing in 26, according to an Associated Press analysis.

Worldwide, the scourge has claimed more than 750,000 lives and caused over 20 million known infections.

The virus, the shutdowns meant to fight it and the reluctance or inability of many people to shop, travel or eat out continue to undermine the economy and force companies to cut staff. Over the past few months, 23 states have paused or reversed their business re-openings because of a resurgence of the virus.

Overall, fewer people are collecting unemployment, a sign that some employers are hiring. The total declined last week to 15.5 million, from 16.1 million the previous week.

“Another larger-than-expected decline in jobless claims suggests that the jobs recovery is regaining some momentum, but … much labor market progress remains to be done,” said Lydia Boussour, senior economist at Oxford Economics.

Hiring is believed to have slowed since the spring, when states reopened and millions of workers at bars, restaurants and stores were rehired. The job gain in August will probably fall short of the 1.8 million added in July, analysts say.