US initial Jobless claims rise to two-month peak to 898,000; layoffs soar

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US initial Jobless claims rise to two-month peak to 898,000; layoffs soar

On Thursday, US Labour Department said in a statement that the number of laid-off Americans seeking state unemployment benefits rose to a roughly two-month peak last week, pointing towards an upscaled layoff wave that has been hindering the United States’ economic recovery from a pandemic-led recession.

On top of that, Thursday’s Labour Department data had largely been in an alignment with recent economic data which had signalled a slowdown in hiring alongside a horrendous slump in business investments ahead of a likely Biden victory in the November 3 US Presidential election.

Besides, according to US initial jobless claims data for the week that ended on October 10, US economy has still been roughly a 10.7 million shy of the 22 million jobs lost during the peak of the first wave of pandemic outbreak in the United States.

US initial jobless claims rise as pandemic escalates

In factuality, Thursday’s rise in initial jobless claims came forth as pandemic cases have begun to soar again in the United States last month, while more Americans appeared to be holding back from shopping, eating alongside engaging with other businesses amid renewed pandemic restrictions on a number of US cities such as Milwaukee and Madison.

Besides, according to the Labour Department report released earlier on Thursday, number of people filing for initial jobless claims rose to 898,000, nearly two-month highs, while a job search website Indeed was quoted saying that the job posting fell at least 17 per cent compared to the same time a year despite an upcoming holiday season.

Meanwhile, citing that the US hiring remained timid despite an upcoming holiday season, an economist at Indeed, Ann Elizabeth Konkel said following release of Thursday’s data, “Further recovery looks to have stalled out.

Holiday hiring is sluggish, and many businesses need to make significant changes to ride out the colder months.