By Kate King

Jobless claims appear to be leveling off in New York and New Jersey, with nearly 90,000 people across the tri-state area filing for first-time unemployment benefits last week.

Unemployment claims dipped in both states in early August, after the extra $600 in federal benefits expired, and as more attractions and businesses were allowed to reopen. But jobless filings picked up again midmonth and have held steady the last two weeks.

Erica Groshen, senior labor-economics adviser at Cornell University, said the recession's effects are now hitting the job market, as life-support measures put in place this spring -- including the supplemental federal benefits and Paycheck Protection Program -- run out.

"The recession is really taking hold," said Ms. Groshen, a former commissioner of the U.S. Bureau of Labor Statistics. "Nonprofits are now worried about whether they're going to get the donations. Manufacturers are worried about whether anyone is going to buy their machine tools. Builders of industrial plants are worried about whether they'll have any new construction projects."

In New York, new jobless claims neared 64,000 last week, down about 28% from the 89,000 initial claims filed during the week that ended July 18, according to the state Department of Labor. After dipping to about 53,000 claims in the week ended Aug. 8, filings have hovered between 63,000 and 64,000 for the past three weeks.

More than half of the initial claims filed last week originated in New York City, where indoor dining is still prohibited and gyms were allowed to reopen Wednesday. Statewide, jobless claims are about 316% higher than a year ago, according to the state labor department.

Paul Connolly, who lives in New Jersey and works for the apparel company PVH Corp. in New York City, returned to work this week after five months on furlough because of the pandemic. When he was furloughed in April, Mr. Connolly considered looking for other jobs but said prospects were slim.

"You're unemployed, but you can't really look for something because no one's out there hiring," he said, adding that he received unemployment benefits from New York during his furlough. "It's a blow to your ego and self-confidence."

Mr. Connolly, 51 years old, said he is working four days a week until the end of September, then ramping up to full-time in October.

"I'm happy," he said. "It feels good to be back."

In New Jersey, initial jobless claims held steady at about 20,000 last week, down 22% from mid-July but up from a low of 14,000 in early August, according to the state Department of Labor and Workforce Development.

Unemployment claims in Connecticut totaled an estimated 5,000 last week, down about 54% from mid-July, according to statistics reported to the U.S. Department of Labor.

Nationwide, seasonally adjusted initial claims totaled 881,000 last week, down about 130,000 from the prior week.

Write to Kate King at Kate.King@wsj.com