The number of Americans claiming unemployment benefits has risen for the second week in a row, raising fears that a new round of corporate closures will hamper – or reverse – early labor market recovery when coronaviruses recur.
The latest data from the Ministry of Labor, covering the week ending 25 July, shows that more than 1.43 million workers requested help last week, increasing the total as the shutdown began to exceed 54 million.
Economists surveyed expected 1.45 million new claims.
FED’S POWELL SAYS THE US ECONOMY MAY NEED MORE POLICIES NEEDED TO AVOID AN “EXTENDED” RECORD
It is the nineteenth consecutive week that claims for jobless employment have reached over 1 million; before the pandemic, a record high of 695,000 was set in 1982. The total number for previous weeks was revised by 6,000 to 1.42 million.
The number of people receiving benefits after the initial week of assistance increased by 867,000 to just over 17 million.
The biggest jump in claims was in California, with 61,154 new workers seeking help, followed by Virginia (25,049), Nevada (14,515) and Oregon (11,013).
The recovery of COVID-19 infections and new cessation measures in several US states, including Florida and California, have raised concerns about economic recovery following steady job growth in May and June.
According to Johns Hopkins University, the most in the world, more than 4 million cases have been confirmed in the USA.
NEAR CORONAVIR LOCATIONS CAN BE PREPARED IN THE NEAR OF LABOR WORK PAGE ITEMS.
The renewed threat of another round of layoffs is emerging at the time of the official end of the additional $ 600 per week in unemployment benefits, which are part of the $ 2.2 trillion CARES law passed in March.
Congress and the White House are currently negotiating another emergency aid package, which could include an extension – but a significant reduction – of extra jobless assistance. Republicans have proposed reducing the harmonized benefits to $ 200 a week until states can adopt a more complex system that would limit aid to 70 percent of a worker’s former salary.
If the virus outbreak intensifies and forces businesses to shut down again, economists have warned that the consequences could be bad.
SUPPORT FOR FED UNDERSCORES FOR ECONOMIC ENFORCEMENT VALIDED BY VIRUS RESEARCH
“The way forward for the economy is extremely uncertain and will depend to a large extent on our success in keeping the virus under control,” Federal Reserve Chairman Jerome Powell told reporters Wednesday at a news conference.
There was a sober tone about the time it would take for the US economy to return to pre-crisis levels, warning that it expected a further downturn before the pandemic.
The latest report on job applications comes when the Ministry of Commerce announced the country’s gross domestic product, the widest rate of goods and services produced in the country, which fell by a record 32.9 percent in the second quarter.
CLICK HERE TO GET FOX SHOP ON GO