On Thursday, US Labour Department data had illustrated another set of slandering unemployment data for the US labour market with more than 12.6 million Americans making ends meet by collecting conventional unemployment benefits, marking up a historically higher number of people still having been impacted from the pandemic outbreak driven dangers more than nine months after the first pandemic case had been detected in the United States.
In point of fact, according to the US Labour Department data revealed earlier on the day, the number of Americans filing for jobless claims for the first time of their lives had inched lower by 33,000 to 860,000 last week, while a staggering 12.6 million people have been collecting unemployment benefits compared to a reading of 1.7 million registered at the same time a year earlier.
US jobless claims point to persistence labour market pains
Notably, latest jobless claims data from the US Labour Department had been brought into the lights as a pandemic resurgence in the United States had still been wreaking havocs on the economy, yielding a colossal shock to a swathe of American companies ranging from factories to retailers.
Besides, US initial jobless claims had never been surpassed a 700,000-level recorded during the Great Financial Depression of 2007-2009, nevertheless, in the United States, weekly jobless claims have exceeded the prior record figure of 700,000 people for the 26 straight sessions in a row.
However, although US initial jobless claims had declined substantially since hitting an all-time high on late-march and the economy appears to have regained some of its traction over the recent months, though a labour market recovery had slowed down dramatically over the recent weeks as pandemic relief aids had run out and the US economy has still been falling short of at least half of the jobs lost during March and April.
Meanwhile, referring to a jejune outlook for the US labour market as recovery remains fragile, a lead US economist at Oxford Economics, Nancy Vanden Houten wrote in a client report shortly after the reveal of Labour Department data, “Layoffs remain widespread and a historically high number of individuals are still receiving some type of jobless benefits.
Failure on the part of policymakers to enact another fiscal relief package poses significant downside risks to the economy and labor market as the recovery appears to be losing momentum. ”