numbers: The number of Americans applying for unemployment benefits has risen for the second week in a row, which would mean that economic growth could stagnate at the end of July. After reaching the maximum value at the end of March, claims were still declining.
Initial job applications rose by 12,000 to 1,434 million in the week ending July 25. MarketWatch survey economists searched for 1.51 million new claims. A new federal relief program for so-called “concert” workers, such as the Uber drivers, reached 829,607 last week.
The number of people already receiving economic benefits, known as persistent entitlements, has risen by 867,000 to 17.06 million. These claims are reported with a weekly delay. This is a sign that workers are staying longer at the expense of unemployment and a slowdown in recruitment. This is the first increase in ongoing receivables since the end of May.
What has happened: Seasonal adjustment factors affect the data with confusion this month. Receivables in July take into account the annual summer shutdowns of car manufacturers, but car plants remain open even after the forced shutdown in April. However, the allegations remain stubbornly high.
Large image: As the virus spreads to the south and west, redundancies increase and bars and restaurants are forced to cut back on operations, economists said. Strong job growth in May and June has boosted labor market optimism, but economists now fear that weaker wage gains may be weaker in July. The economy added 4.8 million jobs in June. The government will report on July employment data on August 7. Federal Reserve Chairman Jerome Powell said on Wednesday that the labor market “must go a long way.”
What do they say? “The risk of temporary job losses is permanent from the repeated closure of companies. That could lead to an even slower pace of recovery, “said Rubeela Farooqi, a leading US economist in the high-frequency economy.
Market reaction: Inventories opened sharply lower after jobless claims and the historic decline in gross domestic product in the second quarter. The Dow Jones Industrial Average DJIA,
in morning trading it fell by 400 points.