US Labour Department data on weekly jobless claims released earlier on Thursday had unleashed a fresh wave of layoffs as the number of Americans applying for state unemployment benefits for the first time in their lives unprecedentedly shot up last week after falling to its lowest level since late-March later last month, while a new round of business restriction measures inclined to contain a likely second wave of the pandemic outbreak had been threatening to slow down a gradual recovery in US labour market.
Aside from that, Thursday’s jobless claims data had also revealed that over 20 million Americans had still been making their ends meet as of October 31, nearly seven months after the onset of pandemic outbreak in the United States.
On top of that, latest US jobless claims data that revealed a 31,000 rise to an adjusted 742,000 applications for initial weekly jobless claims for the week that ended on November 14, came forth less than two weeks ahead of an expiration of two Government-backed programs, which had been proffering additional monetary aids to millions of Americans laid-off due to the pandemic-propelled restrictions.
Lack of Govt. stimulus hinders labour market recovery
Although unemployment claims were declining sharply since hitting a record-high of 6.86 million people in late-March as more than 80 per cent Americans laid off in March and April were rehired, yet latest jobless claims data had been pointing towards a likely plunge in hiring over the coming months as a number of US states had already announced stiffer lockdown measures with New York closing down all of its public schools for an unforeseeable future.
In tandem, a record trough of 4.37 million Americans had filed for extended unemployment benefits for the week that ended on October 31, up about 230,000 from the previous week, signalling a flaccid labour market recovery that was ballooning over the third quarter of the year, largely due to a $3 trillion-dollar stimulus package passed in the US Congress in April this year.
Though, the likelihoods of a steeper lack in Government response to address a languishing US labour market before January 19, 2021 when the US President-elect Joe Biden would swear to take over the Oval Office, had been casting fresh doubts over the recovery of a frail US economy.