The number of American nationals filing for state unemployment benefits for the first time in their lives dropped modestly last week, suggesting a slowdown in US labour market which appears to be in a dying need of further Govt.
stimulus as pandemic-led lay-offs intensified. In point of fact, according to the Labour Department data released earlier on Thursday, initial weekly jobless claims fell by 7,000 to a seasonally adjusted 751,000 over the week that ended on October 31, missing an analysts’ estimate of 732,000 applications for state unemployment benefits, while the staggering initial jobless claims remained well-above their peak of a reading of 665,000 registered during the Great Financial Depression of 2007-09.
Nonetheless, US initial jobless claims had been declining sharply since hitting a record 6.86 million in March, while the US economy had stalled amid an intransigent rise in pandemic cases.
US initial jobless claims fall, but labour market recovery slows
Besides, since a likely Biden victory in Tuesday’s Presidential election had every potentiality to fling the US economy away into a prolonged period of uncertainty, largely due to a number of lawsuits filed by the Republican President Donald Trump over allegations of alleged frauds alongside a call on recounting the ballots, labour market recovery might be slowed down further amid a growing grudge in business investments alongside a likely delay in a much-required pandemic relief package.
Nonetheless, Joe Biden has been expected to announce a large stimulus bill after having been sworn to take over the White House, if elected.
Meanwhile, addressing to a much-required US pandemic relief bill amid a second wave of pandemic outbreak, a Chief Economist in MUFG, New York, Chris Rupkey said following the release of Labour Department data, “It looks like a second wave of layoffs is hitting the economy perhaps due to the rising count of virus cases, but it could also mean that many businesses are unable to reopen fully and facing bankruptcy, so they have to let their workers go”.