The rising number of unemployment benefits is a clear indication that the job market in the United States is suffering. With close to 885,000 more people filing up for it, the week is turning out to be a pretty bad one for the economy. Such an increase is much more than what the economists were expecting. The latest figures seem to be a step up from the figures that were put up last week. For, these figures have already been adjusted for seasonal factors- and still, come way more than 862,000- which was last week. This is the fourth such occurrence of the claims increasing from the previous week.
Biden Government Heading for an Unemployment Benefits Conundrum?
The number of citizens looking towards unemployment benefits went below 5.5 million- according to continuing claims. Unfortunately, the government now has to deal with close to 20 million people filing for claims in the last month- as of 28th November. And if one were to see- it would be an increase of close to 1.6 million from the previous week.
Needless to say, this is quite a difficult time for the economy of the country.
The discussions about Covid relief already seem to be on the verge of completion, and Congress is actively trying to bring out a stimulus package that will consist of unemployment benefits and other such features. Most investors and economists are quite excited due to the coronavirus vaccine that will soon be widely available- something that should lead to an economic rebound in 2021. But Jerome Powell, the Chair of the Federal Reserve knows that there are quite a few American citizens that need help.
Powell stressed the importance of unemployment benefits. In a statement, he mentioned that although things were progressing- they couldn’t afford to lose sight of those who still are unemployed.