On Thursday, the 21st of May 2020, US weekly employment data released by the Labour Department had orchestrated another histrionic downturn for an already recessed US economy with millions of more American citizens filing for unemployment benefits, questioning the efficacy of the US President Donald Trump alongside his administration’s ‘Pay check Protection Program’, since businesses appeared to be utterly reluctant to rehire amid a steep nosedive in demands.
Aside from that, according to the US Labour Department’s weekly jobless claims data released on Thursday (May 21st), American citizens filing for unemployment benefits for the first time in their lives stood at a seasonally adjusted reading of 2.438 million during the week that ended on May 16th, down from a previous figure of 2.687 million a week earlier.
In point of fact, although the initial jobless claims were declining gradually since hitting a record figure of 6.867 million over the week that ended on March 28th, more than a tenth of entire US population appears to be unemployed, a rancorous reading that has still been nearly three-fold of the figure recorded during the peak of 2007-2009 Great Depression and pointing towards a second layoff wave in the US businesses such as utilities, information, finance and education which were less impacted initially.
Besides, adding further strains on to a US economy that has been diving deeper in to a recession territory, Thursday’s (May 21st) weekly jobless claim data, often contemplated as one of the most timely needles of an economy’s health, also depicted that the number of unemployed people had surged to a record high earlier this month, indicating that the US businesses were not rehiring as expected followed by an ease of the lockdown due to the sharp decline in demands as beforementioned.
Labour market struggles amid second layoff waves
Meanwhile, as analysts were emphasizing that a much-bleaker than expected jobless claims were stemmed from a second lay off wave in other industries not directly linked to the pandemic outbreak such as Fintech, information and finance amid a growing lack of liquidity in the money markets alongside a resurgence of Government bonds, forecasting further caustic shadows over the US labour market, a Chief Economist at Naroff Economics in Holland, Pennsylvania, Joel Naroff said followed by the release of Thursday’s (May 21st) initial jobless claim data, “This raises the possibility that new private and public sector cutbacks may be creating a major barrier to stopping the labour market bleeding. ”