The job market of the US is suffering badly as on Thursday,885,000 people claimed for their unemployment benefits, this figure is higher than the figures of the former week than the figure of 80,000 that the economists were predicting. These figures, adjusted for many seasonal factors were reported by the Department of Labor, are particularly bad since the numbers from last week were 862,000.
Unemployment Benefits Claims Goes Higher And Higher
The claims have increased from jobless claims of the prior week for the 4th time in the last five weeks. In the meantime, the continuing claims that track the number of American people filing for jobless benefits have dropped to 5.5M. Over 14M Americans have filed for benefits in the two pandemic-related government employment programs. Unless the Govt. extends these programs, the programs will get expired by 2020 end.
The report arrives at a tough time for the country’s economy. Congress is working on delivering one more stimulus package for struggling businesses and consumers in its lame-duck session preceding Joe Biden’s inauguration. Due to an approved COVID-19 vaccine, investors and economists are excited for a massive rebound in the next year. But still, many Americans need help at this moment. Jerome Powell, Chairman, Federal Reserve stated that although some progress has happened in the market since the 2020 spring, they are not losing sight of jobless Americans. The House and Congress must act soon.
AnnElizabeth Konkel, economist, Hiring Lab reported that the COVID-19 continues to wreak economic havoc as the initial claims appear to be above 6 times the claims before the coronavirus hit the US. Jefferies Economists commented that the reinstitution of social distancing norms and increase in Covid cases are making it difficult for businesses to provide services. Until coronavirus gets controlled, the unemployment benefits claims will go higher. Without the government’s support, there will be additional layoffs in various leisure sectors and the food industry.