US unemployment claims increased to 742,000

The number of Americans seeking unemployment assistance increased to 742,000 last week. This is the first increase in five weeks and is a sign that the outbreak of the resurrected virus will slow the economy and force more companies to cut jobs.

What you need to know

  • The number of Americans seeking unemployment assistance increased to 742,000 last week. This is the first increase in 5 weeks.
  • New unemployment claims increased by 31,000 from last week
  • News arrives as coronavirus pandemics are skyrocketing nationwide
  • The exacerbation of the pandemic is consistent with the end of two federal unemployment programs at the end of the year, which could result in the loss of profits for 9.1 million people.

Benefit applications increased from 711,000 last week, according to a report by the Ministry of Labor on Thursday. In March, when the pandemic first intensified, complaints surged to 6.9 million. Prior to the pandemic, applications typically hovered about 225,000 times a week.

The gradual recovery of the economy is increasingly at stake, with newly identified daily infectious diseases in the United States exploding by 80% in the last two weeks, reaching record highs. More states and cities are issuing mask obligations, limiting the size of meetings, restricting food in restaurants, closing gyms, and reducing the time and capacity of bars, stores and other businesses. At least 15 states are tightening corporate regulations to delay infection.

Evidence is emerging that consumers have lost confidence in their economic outlook and are retreating shopping, eating out and other activities. Spending on 30 million credit and debit cards tracked by JPMorgan Chase fell 7.4% earlier this month compared to a year ago. It showed a sharp drop from two weeks ago. According to a University of Michigan survey, consumer sentiment also declined in early November, down nearly 21% from a year ago.

According to the government, the number of people who continue to receive traditional unemployment benefits has dropped from 6.8 million to 6.4 million. This shows that more Americans are finding jobs and are no longer receiving unemployment assistance. But it also shows that many unemployed have run out of state unemployment assistance (usually expires after six months) and have moved to a federal extended benefit program that lasts another 13 weeks.

According to reports from the Century Foundation, the exacerbation of the virus outbreak is consistent with the approaching deadlines of two federal unemployment programs at the end of the year, potentially losing 9.1 million profits. Congress has so far not agreed on new stimulus measures for unemployed individuals and struggling businesses. Aid cutoffs will significantly reduce unemployed income, further reduce their spending and perhaps undermine the economy.

One of those programs is pandemic unemployment assistance. This made self-employed and contract workers eligible for unemployment assistance for the first time. PUA was founded by a trillion-dollar aid package enacted by Congress in the spring.

The second measure of stimulus provided an additional 13 weeks of benefits to the unemployed who ran out of state benefits.

If these two programs expire on December 26, the Century Foundation estimates that 12 million people will lose profits. Approximately 2.9 million people could move to a state extension benefit program that lasts from 6 to 20 weeks, the report said. But the rest will lose about $ 320 a week on a national average.

When the benefits expire, the unemployed will have difficulty paying rent, buying food, and paying for utilities. Most economists agree that such assistance is effective in boosting the economy, as unemployed people tend to spend their profits quickly.

Withdrawing benefits while millions are still unemployed would be unusually fast compared to the previous recession. During the Great Depression of 2008-2009, the government extended the unemployment allowance to 99 weeks and additional assistance continued until 2013. At the end of the program, about 1.3 million people lost their allowances. This is a fraction of those who lose help at. The end of this year.

“Since the pandemic began, we are still reducing the employment of 10 million people,” said Elizabeth Pancotti, co-author of the Century Foundation report and policy adviser to the left-wing think tank Employ America. .. “We’re heading into winter, we’re seeing additional business closures, consumer demand is already falling …. as cutting off profits is inhumane to me It seems.”

In March and April, when the US pandemic broke out, tens of millions of people applied for unemployment assistance. Many of them were rehired or got new jobs, but those who couldn’t find a job began to run out of six months of state aid as early as September.

Most of them then move on to a pandemic emergency unemployment compensation program that offers an additional 13 weeks. Still, the Century Foundation estimates that 3.5 million people ran out of all this 13 weeks before the end of the year. By then, an additional 950,000 people will run out of the 39 weeks provided by the PUA program.

US unemployment claims increased to 742,000

Source link US unemployment claims increased to 742,000

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