Weekly Unemployment Claims Decreased in the USA

The number of Americans applying for unemployment benefits has declined consistent with the recovery in the labor market. The Ministry of Labor said on Thursday that the initial requests for state unemployment benefits for the week ending February 6 were 793,000, compared with 812,000 the previous week.

According to the survey conducted by Reuters economists, 757,000 applications were estimated for the last week.

Demands remain above the 665,000 figure during the 2007-2009 Great Recession. However, it is well below the record 6.867,000 million applications reported when the outbreak hit the US last March. Federal Reserve Governor Jerome Powell admitted on Wednesday that the improvement in labor market conditions had stalled due to the resurgence in coronavirus infections. The government said on Friday that 49,000 jobs were created in January after the economy reported 227,000 job losses in December.

There are reasons to be optimistic

In the United States, new coronavirus cases have dropped 25 percent compared to last week, seen as the biggest drop since the epidemic hit the country. When we look at four consecutive weeks, infections are on the way down, according to Reuters' analysis of state and county reports. If this trend continues and vaccine distribution expands, it could allow more businesses to reopen. President Joe Biden has proposed another $ 1.9 trillion rescue package, in addition to the approximately $ 900 billion of additional epidemic relief he has proposed. The economy managed to save 12.3 million of the 22.2 million jobs lost during the epidemic.

The Congressional Budget Office estimates that employment will not return to pre-pandemic levels before 2024.

  Weekly Unemployment Claims Decreased in the USA Source: https://www.reuters.com/ You may also be interested in:

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