US Initial jobless claims hold above 2 million as second layoff wave splashes

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US Initial jobless claims hold above 2 million as second layoff wave splashes

On Thursday, US Labour Department’s weekly unemployment data had revealed another leg of perilous pessimism for the US economy as the number of American nationals filing for unemployment benefits for the first time in their lives held above 2 million for tenth straight week in a row over the week that ended on May 23rd, while job cuts from US state alongside local Governments, who were forced to cut off their budgets amid a decimated US economy, and an excruciating rise in second layoff wave in private payrolls, appeared to be weighing on US jobless claims, though the number of claims had been diminishing since hitting a record peak on March 28th.

Besides, according to the Labour Department’s unemployment data that revealed on Thursday morning hours in the United States, GMT. 12.30, people filed for initial jobless claims rose to a seasonally adjusted 2.123 million for the week that ended on March 23rd, missing an analysts’ forecast of a rise of 2.100 million, bringing the total number of people filing for jobless claims since March 21st to a record 41 million or roughly an eighth of the entire US population.

Nonetheless, the last week’s US initial jobless claims were 13.11 per cent lower from a revised reading of 2.446 million a week earlier, the US Labour Department had unveiled.

US initial jobless claims underscore a second wave of private sector layoff, delayed recovery

Meanwhile, since US initial jobless claims were stuck at an agonizingly higher level with non-essential businesses were struggling to re-open, pointing towards a delayed recovery from the pandemic-induced ruin, a Chief Economist at Naroff Economics in Holland, Pennsylvania, Joel Narroff said followed by the release of US initial jobless claims, “I am concerned that we are seeing a second round of private sector layoffs that, coupled with a rising number of public sector cut backs is driving up the number of people unemployed.

If that is the case, given the pace of reopening, we could be in for an extended period of extraordinary high unemployment. And that means the recovery will be slower and will take a lot longer.