The number of laid-off workers seeking unemployment aid in Massachusetts and nation-wide barely fell last week, and the reopening of small businesses has leveled off – evidence that the job market’s gains may have stalled just as a surge in coronavirus cases is endangering an economic recovery.

The federal government also reported Thursday that the economy contracted at a 5 percent annual rate in the first three months of the year, a further sign of the damage being inflicted by the viral pandemic. The economy is expected to shrink at a roughly 30 percent rate in the current quarter. That would be the worst quarterly contraction, by far, since record-keeping began in 1948. Economists do expect a snap-back in the second half of the year, though not enough to reverse all the damage.

Last week, the number applying for jobless benefits across the country declined slightly to 1.48 million. It was the 12th straight weekly drop. An additional 700,000 people applied through a program for self-employed and gig workers that made them eligible for aid for the first time. These figures aren’t adjusted for seasonal variations, so the government doesn’t include them in the official count.

Combining those figures, overall applications for jobless aid have edged down just 3 percent in the past two weeks, a much slower pace than in late April and May.

The number of Massachusetts residents applying for benefits for the first time dropped only 443 for the week ending June 20 compared to the prior week, to 29,51. Continued unemployment claims sat at 558,269, a mere 2 percent drop over the week ending June 13. That week saw unemployment claims drop by 14,676 compared to the week ending June 6, which itself saw those numbers increase by 17,626 over the prior week.

“There has been no real decline in weekly claims the past two weeks,” said Julia Pollak, a labor economist at ZipRecruiter. “There has also been no real increase in job openings. What seemed like encouraging signs of recovery in May largely stalled in June.”

A separate government report Thursday said orders for durable goods unexpectedly jumped nearly 16 percent in May, reflecting a rebound in some business activity. Still, the pace of orders and shipments remains far below pre-pandemic levels. And excluding the volatile transportation category, so-called core orders rose only modestly, reflecting still-sluggish business investment.

The number of continued weeks’ unemployment claims by industry in Massachusetts as of June 20. EOLWD graphic

Real time data on small businesses suggests that the job market’s improvement slowed in June compared with May, when 2.5 million jobs were unexpectedly added. About 78 percent of small businesses have reopened as states have lifted shutdown orders, according to data from Homebase, a company that provides scheduling and time-tracking software to small businesses. Yet nationally, that figure has been flat for the past week.

In states that are suffering spikes in COVID-19 cases, small businesses are closing again and cutting some jobs.

Ray Sandza, an executive at Homebase, said the plateau in business reopenings is a worrisome sign that the remaining 20 percent of small companies could end up closing permanently.

“If you haven’t reopened yet, the likelihood of coming back is low,” Sandza said.

He noted that most small businesses had just one or two months’ of cash on hand when the pandemic intensified three months ago.

Larry Kudlow, President Donald Trump’s top economic adviser, asserted Thursday on Fox Business that the economy is rebounding quickly.

“I think the strong ‘V’ recovery is right still there,” Kudlow said, referring to the shape of a sharp rebound on a chart.