On Thursday, the US Labour Department’s data for initial weekly jobless claims had deepened concerns that the latest pandemic-led forced business closure measures had been taking a greater toll on labour market recovery, furthering evidences that a lack of Government stimulus alongside the pandemic resurgence might slash a large chuck of holiday season businesses.
In point of fact, latest US Labour Department report on initial claims for unemployment benefits had hit a three-month peak for the week that ended on December 5, bolstering views that the pandemic associated lay offs could mount over the coming weeks despite a busy holiday season, while analysts were quoted saying that the small-scale businesses were bearing the heaviest brunt which could have been averted, had an additional Government stimulus bill been out there.
Initial weekly jobless claims jump to three-month peak
Besides, according to US weekly initial jobless claims data released earlier in US trading hour, the number of Americans filing for state unemployment benefits for the first time in their lives surged by 137,000 to a seasonally adjusted 853,000 for the week that ended on December 5, marking up the highest figure since mid-September, however, on an unadjusted basis, initial jobless claims rose by 228,982 to 947,504 last week.
Aside from that, applications for continuing claims surged to 1.4 million last week, as Government funded programs had been contracted sharply in context of a vengeful Trump Administration which appeared to be focusing more on to making life harder for a Biden Administration that would take over the Oval Office by January 20.
Meanwhile, citing further holocaust brewing over the US economy amid a steep lag in initiatives for a Government stimulus bill, a Chief Economist at MUFG in New York, Chris Rupkey said, “Mass unemployment continues to weigh on economic growth and demand.
If Congress continues to sit on its hands without voting on a new relief package, the plight of the nation’s unemployed is going to grow darker by the hour”. Nonetheless, inflation outlook was seen tepid in a medium- to longer-term outlook amid a sheer lack of fresh capital inflows into the US businesses, said analysts.