Home PoliticsAmerica Unemployment Remains an Issue in USA
Unemployment

The United States saw 787,000 new applications for unemployment benefits in the final week of 2020, the Labor Department said Thursday, indicating layoffs remain widespread months into the coronavirus pandemic.

The total was just 3,000 less than the previous week, seasonally adjusted, but still nowhere near the record-low unemployment seen before Covid-19 broke out in the US in March, causing widespread business restrictions that crippled the economy.

Unemployment

Another 161,460 people, without seasonal adjustment, filed claims under a program for freelance workers not normally eligible for government benefits in the week ended January 2.

That was much lower than in prior weeks, but the program briefly lapsed in that period, before an extension took effect, meaning the total could rise again in coming weeks.

“The underlying story here is clear. A combination of Covid fear and state-mandated restrictions on activity in the services sector is squeezing businesses, and no real relief is likely until a sustained decline in pressure on hospitals emerges,” said Ian Shepherdson of Pantheon Macroeconomics.

Analysts had expected a sharper fall in claims for the week, and Diane Swonk of Grant Thornton said the data indicate Friday’s government employment report would show tepid job creation in the final month of the year.

“Brace (for) job creation to be flat-to-negative when the data (for) December comes out tomorrow,” she wrote on Twitter. She projects a gain of 100,000 jobs, “which is not significantly different than zero for the month.”

The business shutdowns beginning in March had sent the unemployment rate skyrocketing, and though it has decreased in recent months, the monthly reports from the Labor Department have shown the number of long-term unemployed steadily increasing.

The weekly report showed signs that trend is continuing, with an additional 148,651 people filing claims under the Extended Benefits program that is only available in states with high unemployment as of the week ended December 19.

All told, around 19.2 million people continued to receive aid from all government unemployment programs as of that week, the report said.

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.