US weekly jobless claims remain unchanged amid fragile labour market recovery

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US weekly jobless claims remain unchanged amid fragile labour market recovery

The number of Americans filing for unemployment benefits for the first time in their lives remained almost unchanged at roughly 884,000 last week, pointing towards a sluggishness in labour market recovery from the pandemic-induced wound.

In point of fact, US Labour Department said in a statement earlier on Thursday that US initial jobless claims were little changed last week, while the readings of both initial and continued claims had been hovering at a higher level.

Besides, weekly jobless data from the US Labour Department for the week that ended on September 5 came against the backdrop of a baleful outlook in US labour market as last Friday data had shown a step-up in permanent job losses alongside a further slowdown in employment growth, vindicating the US Fed’s July FOMC report that said the US labour market would unlikely to sustain momentum amid a steady spike in the pandemic cases which in effect had prevented small-cap businesses from re-hiring.

US weekly jobless claims hover at record-high as pandemic stimulus dries up

In tandem, latest downcast weekly jobless data came forth as the Government fiscal aids to the laid-off Americans alongside businesses had dried up, while late on Thursday, the US Congress had cancelled a proposal of $300 billion in pandemic relief aid, darkening the outlook further for a faltering US labour market.

As many as 29.6 million Americans had been on unemployment benefits last month. Meanwhile, as the US Labour Department data had unveiled that the initial claims for state unemployment benefits remained almost unchanged at 884,000 last week having been dropped below 1 million level a couple of weeks earlier, referring to a wide-spread layoffs in the United States, a lead US economist at Oxford Economics in New York, Nancy Vanden Houten said followed by the release of Thursday’s weekly jobless claims data, “Layoffs remain widespread and the labor market remains in a fragile place at a critical juncture.

Failure on the part of policymakers to enact another fiscal relief package poses significant downside risks to the economy and labor market.