US weekly jobless claims near four-month lows; millions drawing unemployment paycheck

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US weekly jobless claims near four-month lows; millions drawing unemployment paycheck

US Labour Department’s data on weekly jobless claim released on Thursday had shimmered a beacon of hope for the fiscally embattled US economy, as the number of American citizens filing for the unemployment benefits for the first time in their lives fell to a near four-month lows last week, however, drawing controversies a record 32.9 million Americans had collected their unemployment benefits checks over the third quarter of June, bolstering view that the US labour market might take years to recover from the pandemic induced economic slump.

In point of fact, according to the US weekly jobless claim data from the US Labour department for the week that ended on July 4, people filing for the initial jobless claims for state unemployment benefits fell by 99,000 to a seasonally adjusted 1.314 million, marking up the 14th straight week of decline since the claims had hit a historic peak of 6.867 million in the late-March, however, an analysts’ poll had forecasted a reading of 1.375 million applications for initial jobless claim benefits last week.

Don’t be fooled over ivory data, says analysts

In point of fact, Thursday’s weekly initial jobless claims report came forth as tens of thousands of small businesses in large part of the country including the densely populated Florida, California and Texas, had reclosed their businesses due to an uptick in the pandemic cases, while worries were jittering that the United States might be headed towards a second round of forced business closures.

Besides, bankruptcies had been growing in context of weak demands, though businesses had somehow managed to keep their workers on payroll by exhausting the US Government’s nearly $600 billion in pandemic small-business loans.

Meanwhile, adding that the Thursday’s jobless claims data was mired with controversy since the 4th of July had been a national holiday which often resulted in volatile reading in national-scale indexes, a Chief Economist at MUFG in New York, Chris Rupkey said following the reveal of the data, “Don’t be fooled, the economy’s troubles aren’t over yet, not by a long shot.

For the labour market it is not the second wave that is holding jobs in suspension, it is the fears of the second wave and even a third wave that is holding the economy back and making the road to recovery an even longer one.