US initial jobless claims rise as cut-offs of extra $600 in pandemic relief near

by   |  VIEW 2240

US initial jobless claims rise as cut-offs of extra $600 in pandemic relief near

On Thursday, US weekly unemployment data released from the US Labour Department had added to further stresses into an ailing US economy which had entered into a technical recession back in the February this year, as the nation was hit with another set of dour economic data including a sharp rise in unemployment benefit claims for the first time in fourteen weeks, bolstering views that the resurgence in pandemic outbreak in the United States would likely to stall or reverse the economic recoveries gained thus far.

Apart from that, Thursday’s Labour Department data on US initial unemployment claims came forth at a critical time, while the Capital Hill has been heated up over debates regarding an extension of an additional weekly $600 in pandemic relief bill for every American citizen, the last major source of economic aid from the $2 trillion relief package sanctioned in the US Congress back in March, which is scheduled to be expired by end-July.

Nearly 30 million unemployed Americans could struggle unless extra unemployment benefits

Besides, according to the US Labour Department’s US initial jobless claims report released earlier on the day, more than 1.4 million Americans had filed for unemployment benefits for the first time in their lives last month, up from a 1.3 million a week earlier, marking up the 18th straight week that had topped 1 million in initial jobless claims, suggesting a roaring back of withering weaknesses in to the US Labour market.

Meanwhile, referring to an increase in lay-offs amid a wave of business re-closures, which in effect had led to the rise in last week’s initial unemployment benefit claims, an economist at the Investment Bank Evercore ISI said followed by the reveal of US Labour Dept.’s report, “Every time a business closes, that makes the recovery longer and harder, so that worries me”.