Business & Investment

Unemployed claims fell below 800,000, but furloughs in the U.S. continue to increase after the record coronavirus outbreak.

Numbers: New applications for state unemployment allowance fell slightly around Christmas, falling below 800,000 for the first time in a month, but record coronavirus outbreaks still have a significant impact on the labor market and more people. I am unemployed.

In the seven days ending December 26, the first unemployment claims traditionally filed throughout the state decreased from 17,000 to 787,000. The government said on thursday..

Economists surveyed by MarketWatch predicted that their first unemployed bill would be seasonally adjusted for a total of 835,000.

It may have decreased due to people waiting to apply for benefits until the end of the vacation. Uncertainty about whether Congress would approve an extension of the unemployment allowance before it runs out at the end of the year may also have contributed.

In any case, the weekly unemployment rate is still very high.

Another 308,262 benefit applications were filed last week through a temporary federal bailout program created during the pandemic, bringing the total number of new claims to 1.15 million last week. Total billing has not yet fallen below 1 million per week.

Last week, President Trump signed a law to extend the unemployment allowance for unemployed Americans and increase payments by up to $ 300 a week. If Washington fails to act, the interests of millions of people may be cut off, and some may still face payment delays.

read: When will unemployed Americans receive an additional $ 300 benefit?

While unemployment claims correctly reflect the increase or decrease in the unemployment rate during a pandemic, government oversight agencies also see the number of individual individuals applying for or collecting benefits due to fraud, double calculations and other issues. Was found to be increasing.

read: GAO swells as unemployed claims

The Bureau of Labor Statistics will take steps to improve the data, but at this time the billing report is not considered to be completely accurate. Economists say they pay attention to the direction of the claim, not the total.

read: Why Inaccurate Unemployment Claims Reports Are Still Useful for Investors

What happened: The state’s new unemployed allegations slipped to a pandemic low of 711,000 in early November, before a record increase in coronavirus cases pushed them back to over 800,000. They may remain elevated until the latest coronavirus surges begin to recede.

First bills fell the most last week in Illinois, Texas, Florida, and Georgia.

The largest increases occurred in California and New York, as was the case throughout the pandemic. Kentucky also reported a significant increase.

Meanwhile, the number of people already collecting state unemployment allowances, known as recurring claims, has dropped by 103,000 to seasonally adjusted 5.22 million. It’s the low price of a new pandemic.

Still, millions of people who have run out of state benefits have yet to find a job and have only moved to a temporary federal aid program. The federal-funded ongoing billing was almost unchanged at 4.77 million in the week ending December 12, the latest available data.

Federal unemployment allowance applications have more than tripled since August. This reflects the increased difficulty of many who have lost their jobs forever.

Overall, the number of people benefiting from eight separate state and federal programs was reported to be unadjusted 19.6 million as of December 12. This is a decrease of almost 800,000 from the previous week.

But these numbers are also in dispute. The government’s more comprehensive monthly employment report showed that far fewer 10.7 million people were unemployed at the end of November.

Economists say the real number of unemployed is probably in the middle.

read: U.S. consumer confidence plummeted in December

Big picture: The economy is clearly suffering from another setback due to the coronavirus, which could reduce employment for the first time in December since the start of the pandemic last April.

New federal aid will help unemployed Americans and companies struggling to survive the next few months, but the economy will not recover more widely until vaccines become more widespread and epidemics diminish. ..

to see: MarketWatch Coronavirus Recovery Tracker

What are they saying? Robert Flick, Corporate Economist of the Federal Navy Cooperative Banking, said: ..

“And as long as that surge continues, we can expect more than one million Americans to lose their jobs each week, based on state and federal measures, despite the stimulus.”

Market reaction: Dow Jones Industrial Average
+ 0.24%

And S & P 500
+ 0.13%

It was set to open slightly lower on Thursday, the last trading day of the year. The volume of transactions was expected to be small.

The Weekly Claims Report is the last report issued by the government in 2020. Due to the New Year’s holiday, the market will be closed on Friday.

Unemployed claims fell below 800,000, but furloughs in the U.S. continue to increase after the record coronavirus outbreak. Unemployed claims fell below 800,000, but furloughs in the U.S. continue to increase after the record coronavirus outbreak.

Back to top button