On Thursday, US Labour Department data on initial jobless claims came as a shimmering ray of hope for a US labour market which has long been experiencing a muffled momentum, as the number of Americans filing for state unemployment aids for the first time on their lives dropped below a historically high of 800,000-level for the first time since mid-March, during the peak of the pandemic outbreak in the United States.
In point of fact, according to US Labour Department data on US initial jobless claims released earlier on Thursday, the number of laid-off Americans seeking jobless claims fell to 787,000 on an unadjusted basis over the week that ended on October 17, while a revised total of initial jobless claims for the week that ended on October 3, dropped to 767,000, suggesting a gradual decline in job losses, though analysts said that the figures had still been hovering above a historically high level.
US Initial Jobless Claims fall below 800,000 for the first time since mid-March
Aside from that, analysts and economists across the United States had welcomed the reading as a crucial evidence that US labour market has been slowly shrugging off the pandemic’s fiscal fallout, nonetheless, a perspicacious bunch of analysts had also focused on the flipside of the coin saying that the gains in US jobs would unlikely to persist amid a pandemic resurgence in the US, while a number of consumers had shown a sheer reluctance to shop, travel or social gatherings, a tattering trend which could lead to a sharp decline in the latest gains of US labour market.
Meanwhile, addressing to the aviation and hospitality sectors of US economy which had borne the heaviest brunt from the pandemic-led recession and would more likely to contribute to a lion’s share of the laid-offs over the coming weeks, a chief economist at Pantheon Macro-economics, Ian Shepherdson said following the release of US Labour Department data, “We doubt it will continue as COVID infections spread rapidly, pushing down demand for discretionary consumer services, especially in the hospitality sector”.