The number of people seeking U.S. unemployment benefits fell last week to 709,000, a still-high level but the lowest figure since March and a sign that the job market might be slowly healing.

The figures coincide with a sharp resurgence in confirmed viral infections to an all-time high above 120,000 a day. Cases are rising in 49 states and deaths are increasing in 39. The nation has now recorded 240,000 virus-related deaths and 10.3 million confirmed infections.

As colder weather sets in and fear of the virus escalates, consumers may turn more cautious about traveling, shopping, dining out and visiting gyms, barbershops and retailers. Companies in many sectors could cut jobs or workers' hours. In recent days, the virus's resurgence has triggered tighter restrictions on businesses, mostly restaurants and bars, in a range of states, including Texas, New York, Maryland and Oregon.

Last week’s new applications for unemployment benefits were down from 757,000 the previous week, the Labor Department said Thursday. The still-elevated figure shows that eight months after the pandemic flattened the economy, many employers are still slashing jobs.

The number of people who are continuing to receive traditional unemployment benefits fell to 6.8 million, the government said, from 7.2 million. That suggests that more Americans are finding jobs and no longer receiving unemployment aid. But it also indicates that many jobless people have used up their state unemployment aid – which typically expires after six months – and have transitioned to a federal extended benefits program that lasts 13 more weeks.

The viral outbreak threatens to upend the improvement in the job market in recent months. The unemployment rate plunged a full percentage point in October to 6.9% while employers added a solid 600,000 new jobs.