US weekly initial jobless claims dip, but layoffs hit record high in 2020

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US weekly initial jobless claims dip, but layoffs hit record high in 2020

US Labour Department data for weekly initial jobless claims released earlier on Thursday had orchaestrated a shimmering ray of hope for a scuffling US economy as the number of Americans filing for jobless claims for the first time in their lives dropped last week, but still anchored over an extremely ominous level, while US labour market recovery seemed to be heading towards an unprecedented stagnation as a staggering rise in pandemic cases across the country has been threatening a ward-off of economic recoveries witnessed last year.

Besides, according to US Labour Department data released earlier in the day, the number of Americans filing for first-time claims for state unemployment benefits dipped marginally by 3,000 to a seasonally adjusted 787,000 during the week that ended on January 2, compared to a 790,000 in first-time filings registered a week earlier, beating an analysts’ estimate of a rise in applications to 800,000.

Nonetheless, other Government data released on Thursday had depicted a more jejune outlook what analysts said could harness every potential to jeopardize the country’s economic recoveries , nonetheless, several Wall Street analysts had also added that the latest exhaustion in a struggling US labour market would likely to be short-lived and the economy had no longer been in frets of entering into a recession again as a Democratic-led Congress under the President-elect Joe Biden would likely to release a raft of pandemic stimulus in a near-term outlook while de-escalating tensions with major trading partners.

US layoffs soared 18.9 per cent last month

Nevertheless, in the latest flashpoint of an unfathomable reluctance in US business re-hiring, layoffs rose by 18.9 per cent last month compared to the same time a year earlier, while the report comes over the heels of a decline in US private payrolls for the first time in eight months in December as US employers shed roughly 123,000 jobs last month despite a busy holiday season.

Meanwhile, addressing to an additional monetary support as pledged by New York Senator Chuck Schumer, a Democrat who would likely to become the new Senate Majority Leader, a senior economist at Moody’s Analytics in West Chester, Pennsylvania, Ryan Sweet said, “The good news is additional support is likely coming in the first quarter”.