US Labour market recovery slows; initial jobless claims hover still above 1 million

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US Labour market recovery slows; initial jobless claims hover still above 1 million

US Labour Dept. said in a statement later this week that the number of Americans filing for unemployment benefits for the first time in their lives had been hovering above 1-million mark last week, pointing towards a sluggishness in labour market recovery.

Aside from that, latest set of downbeat data from the US Labour Department came forth roughly three weeks after the negotiations over a second round of pandemic relief bill had broken off without an agreement, while causing further angsts for the laid-off Americans, the US House Speaker Nancy Pelosi had been quoted saying shortly after the release of initial jobless claims data that the Democrats would not resume talks unless the White House should reconsider a total of $2.2 trillion, $900 billion below the latest White House offer according to the White House Chief of Staff Mark Meadows.

On top of that, amid latest vindication of the vivid demonstration of a sharply slowing US economy followed by the obliteration of an additional $600 per week in the unemployment benefits, the US Govt. had also reaffirmed that the US economy had suffered its steepest contraction on record in 73 years over the second-quarter of the year due to the pandemic-led disruptions with corporate profits bearing the heaviest brunt.

Initial jobless claims still above 1 million as businesses remained cautious

According to the US Labour Dept.

report released later this week, initial jobless claims for state unemployment benefits fell by 98,000 to 1.006 million on a seasonally adjusted basis for the week that ended on August 22, while a Wall St. analysts’ poll had forecasted a figure of 1 million in initial jobless claims.

Meanwhile, addressing to a growing uncertainty over Federal Govt. assistance that had been ramping up the US consumer spending over the past three months, a chief economist at MUFG in New York, Chris Rupkey said followed by the release of Labour Dept.

data, “This economy is not out of the woods yet. Without federal government assistance it will take years for the services-based economy to generate employment opportunities for the workers unable to return to thousands of closed and bankrupt restaurants and bars and retail shops and malls across America.