US initial jobless claims linger above 1.5 million for straight 13th weeks

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US initial jobless claims linger above 1.5 million for straight 13th weeks

On Thursday, US Labour Department’s data on US initial jobless claims had added further glooms over an already recessed US economy, as the pace of decline of the number of Americans filing for unemployment benefits for the first time in their lives since hitting an all-time high of six million later on March appeared to have stalled in light of a second layoff wave, while a raft of companies seemed to clattering amid a fragile supply chain alongside consumers’ frets over a second wave of pandemic outbreak, bolstering a viewpoint that the US economy might require years to recover from the pandemic-led slump as warned by the Fed Chair Jerome Powell on last week’s FOMC minutes.

Besides, latest downcast data on US jobless claims comes over the heels of a number of encouraging figures including a record surge in US retail sales in May alongside an augmentation of 2.5 million people in US non-farm payrolls, while several analyst suggested that the initial jobless claims data for the week that ended on June 13 had poured fresh scorns over prospects that the US economy could rebound in a near-term outlook.

Initial jobless claims pour cold water on hopes of recent green-shots

On top of that, while at least 30 million US citizens have been collecting employment benefits every week, adding further strains on to the economy, Wednesday’s Labour Department data had reported that the initial jobless claims fell by only 58,000 last week to a seasonally adjusted figure of 1.508 million for the week that ended on June 13, as a second layoff wave looms large amid a muffled momentum in US business activities despite an ease of lockdown measures.

Meanwhile, adding that the latest Labour Department data had undermined a number of encouraging economic data including a record upsurge in retail sales last month, a chief economist at MUFG in NY, Chris Rupkey said after the release of jobless claims data, “The recent sightings of green shoots for economic growth are going to fade in a hurry if workers can’t return to the jobs they lost during the pandemic recession.