On Thursday, US Labour Department data on weekly claims for state unemployment benefits released earlier in the day, had orchaestrated an ominous outlook for a sharply slackening US labour market which has been vying to vent out a way forward in context of a record rise in pandemic cases across the United states as the number of Americans filing for initial jobless claims remained at a historically high over the week that ended on November 28.
Nonetheless, US weekly initial jobless claims edged lower last week over the narratives of a temporary rise in hiring following two straight weeks of rises. As beforementioned, a number of Wall St. analysts were quoted saying following reveal of the day’s Labour Department data that a bigger-than-anticipated depreciation in initial jobless claims last week, was mostly influenced by Thanksgiving holiday, however, analysts had also forecasted a gloomier outlook for the US labour market which had been hammered hard amid a steep lack in Government stimulus.
Besides, adding further strains, Republican and Democratic lawmakers had failed to reach an accord over a pandemic relief bill on Wednesday with the Senate’s top Democrats citing the deal as an “inadequate, partisan” proposal.
US weekly initial jobless claims remain at an extraordinarily high
In tandem, according to US Labour Department data released earlier in the day, the number of Americans filing for state jobless aids for the first time in their lives dropped by 75,000 to a seasonally adjusted 712,000 over the week that ended on November 28.
Besides, other economic data released on Thursday had unveiled that US service sector activities had been plunged to a six-month low in November, bolstering views that the US labour market had been rapidly losing steam amid a stiffening of pandemic restriction measures.
Meanwhile, addressing to the likelihoods of a further downside momentum for a pandemic-squeezed US labour market, a Chief US economist at High Frequency Economics in White Plains, New York, Rubeela Farooqi said following Labour Department data, “Risks are to the downside from new restrictions and closures that will weigh on demand and activity going forward”