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US unemployed billing will decrease.Still at 847,000 as the pandemic intensifies

Washington (AP) — The number of Americans applying for unemployment benefits has declined, but last week it remained at a historically high 847,000. This is a sign that the furlough will continue as the coronavirus pandemic is intensifying.

Last week’s bills fell 67,000 from 914,000 last week, according to the Ministry of Labor. Prior to the virus hitting the United States in March last year, there were no more than 700,000 weekly applications for unemployment assistance.

Mitigate the unexpected decline in claims last week: The four-week moving average (smoothing weekly turnover) increased by more than 16,000 last week to 868,000, the highest since September.

Overall, nearly 4.8 million Americans received a traditional state unemployment allowance during the week of January 16. This has fallen from nearly 5 million last week, well below the staggering peak of nearly 25 million in May, when the virus almost stopped economic activity. .. This decline suggests that some unemployed are finding new jobs and others are running out of state benefits.

There is optimism that the COVID-19 vaccine will help end the health crisis and stabilize the economy, but efforts have stopped and the job market is now being emphasized.

The United States currently records just under 150,000 new cases of coronavirus per day. This has fallen from nearly 250,000 per day earlier this month, but more than double the level from March to late October. More than 425,000 Americans have died in a pandemic, and health experts warn that the United States will kill 500,000.

The virus forced state and local governments to restrict the operation of restaurants, bars, and other businesses, and discouraged Americans from leaving their homes.

Since February, the United States has lost 9.8 million jobs, including 140,000 in December.

Americans who have lost their jobs due to a pandemic can now be assisted by an extended relief program that now offers up to 50 weeks of benefits, or a new program for contractors and self-employed people. In total, 18.3 million people received some unemployment allowance during the week ending January 9, the latest period of data availability.

The new government financial assistance package, among other things, offers a federal unemployment allowance of $ 300 a week, in addition to regular state unemployment assistance. The new benefits are valid until mid-March.

As vaccines become more widely distributed, economists expect growth to accelerate later this year, unleashing growing demand for travel, eating out, and visits to cinemas and concert halls. Such spending can boost employment.

But for now, the economy is sluggish. Retail sales have declined for the third straight month. Restrictions on restaurants, bars, and some stores have led to sharp spending cuts, in addition to the reluctance of most Americans to shop, travel, and eat out.

Ultimate Kronos Group, a provider of time-tracking software for small businesses, said the number of shifts clients made fell 2.5% from the previous month from the second to the last week of January. The decline was the largest (4.3%) in the southeastern part. David Gilbertson, Vice President of UKG, said: “As the end of January approaches, it is clear that the country’s workforce recovery is still struggling due to the slump in the holiday season.

As of January 21, data firm Womply reports that spending at local businesses has fallen 23% year-on-year, with 26% closed, including 30% for restaurants and 42% for bars. .. Hotel revenue is down 51%.

President Joe Biden has announced a $ 1.9 trillion coronavirus program. This, among other things, provides most Americans with a $ 1,400 check, for a total of $ 2,000 per adult, in addition to the $ 600 check already distributed.

The new plan will also make $ 400 a week available on federal benefits for unemployed Americans and extend the eviction and foreclosure moratorium until September. Biden’s proposal requires parliamentary approval, and Congressional Republicans are already barking at that scale.

“Additional fiscal stimulus and broader vaccine dissemination should help improve the spring labor market,” Oxford Economics economists Nancy Vanden Horten and Gregory Dako said in a study note. “But claims are expected to remain high in the short term as the pandemic continues to limit activity and concerns about new strains of the virus.”

US unemployed billing will decrease.Still at 847,000 as the pandemic intensifies

Source link US unemployed billing will decrease.Still at 847,000 as the pandemic intensifies

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