Amid conflicting narratives on whether the United States has been well en-route towards a “V” shaped economic recovery, US Labour department data released late on Wednesday had poured cold water over prospects of an earlier-than-anticipated recovery as the number of Americans filing for state unemployment benefits for the week that ended on November 21 rose further, bolstering US Federal Reserve’s view that the current wave of pandemic resurgence across the United States were heightening up lay offs and slowing down labour market recovery.
In point of fact, according to US Labour Department data released late on the day, initial weekly jobless claims rose 30,000 to a seasonally adjusted 778,000 last week, marking up the second straight weekly rise in jobless claims, however, on an unadjusted basis the claims were jumped to a stabbing 827,710 last week.
Besides, the Labour Department data had also unfurled that at least 20.5 million Americans had collected state jobless benefits earlier this month.
US jobless claims soar; labour market recovery in doubt
Aside from that, other Govt.
data released on Wednesday had revealed that US Consumer Spending soared 0.5 per cent in October following a 1.2 per cent rise in September, while personal income fell by 0.7 per cent, paring almost all of its gains registered in September.
Meanwhile, adding further clouds over the likelihoods of a recovery this year despite encouraging developments on pandemic vaccines, a JPMorgan economist in New York, Daniel Silver said following the Govt.
data late on the day, “Were it not for recent virus-related developments, it looks like GDP would be on track for a pretty robust fourth quarter. But given the recent surge in new COVID-19 cases, we think that the data will soften noticeably in November and December”.