US weekly jobless claims hover above 800,000 as layoffs remain elevated

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US weekly jobless claims hover above 800,000 as layoffs remain elevated

In what could be viewed as a ruinous blow to a rancorous US labour market, the US Labour Department said on Thursday that the number of laid-off Americans seeking for state unemployment benefits had slightly tailed off last week, bolstering evidences that a clattering crumble in a sharply softening US labour market might face off a significant extent of downturn before stepping up a tentative recovery that began this Summer.

In point of fact, according to US Labour Department’s weekly jobless claims data that was released earlier on the day, the number of American nationals seeking for jobless benefits for the first time fell marginally to a still-high 837,000 last week, suggesting that a raft of US businesses had still been slashing a historically higher number of jobs.

Continuing claims decline in recent weeks

Apart from that, the US Labour Department had added that the continuing jobless claims had also lessened last week, though roughly 25 million Americans had been relying on the state unemployment aids, while several analysts were quoted saying that the job losses might escalate over the coming weeks as a swathe of US businesses ranging from retailers to airlines to small-scale restaurants, would likely to taper off expenses.

Nonetheless, as an additional $600 per week in unemployment benefits had expired on July alongside a $300 in weekly benefits which the US President Donald Trump had offered by way of an executive order, had also run out on mid-September, according to the US Commerce Department, total payoffs in unemployment benefits had been plunged by more than a half in August which in turn had demeaned the Americans’ earnings by 2.7 per cent in September, a tattering trend which in effect could lead to a stagnation in the US economic growth.

Meanwhile, raising an alarming bell over the futures of US labour market, an economist at Oxford Economics, Gregory Daco said followed by the release of weekly jobless claim data, “Unless employment growth picks up, or additional (government) aid is extended, consumer spending is at risk of slowing dramatically during the second phase of the recovery”.