The labor market in the US has their backs pushed to the wall completely over unemployment claims. Recently the US is expecting a fresh new wave of workers facing the rampant issue of unemployment. Although the US has been witnessing the highest number of fresh coronavirus cases every day and the pandemic is raging to its absolute level, the US is expecting a decline in the new claims for unemployment benefits.
The Labor Department is expected to release their weekly report regarding the initial claims from the jobless people across the country on Thursday, 26th November, at 8:30 am in the morning. According to the estimates put together by the consensus of Bloomberg, here compilation of points that the economists might be expecting from this report of the Labor Department:
i. Initial claims of unemployment till the 21st of November, Saturday: The expected number of claims was 730,000. However, in the week preceding this, the number of claims of unemployment was 742,000.
ii. Claims of unemployment continued till the 14th of November, Saturday: The expected number of claims was 6 million. However, in the week preceding this, the number of claims of unemployment was 6.37 million.
As of now, the claims of unemployment have remained under the key mark of 1 million for a period of three months’ time. Along with this, the total number of unemployment claims for the entire duration of the coronavirus pandemic, from the time it began, has remained well under the mark of 7 million.
Unemployment Claims Likely To Increase
Despite the exceeding high witnessed by the stock market, the surging wave of COVID-19 infections has been strangling the market of jobs in the US. It has also shown its impact on economic growth since the officials are pondering over some more strict rules and protocols regarding social distancing in some important areas across the country. In fact, some states have implemented night curfews in order to curb the night out gatherings during this season of festivities and holidays.
Several states, as well as localities, have decided to shut down the schools and control the businesses which fall under the category of non-essentials. In the meantime, numerous large companies have made public announcements of layoffs during the past months.
The industries of service including bars and restaurants in California have been closed for dine-in services and have been bearing the brunt due to the renewed pandemic lockdowns.
Recently, every day the US is witnessing an increased number of cases of new infections that are more than 100,000 on a daily basis with 12 million US citizens infected.
The coming winter seems to be grim owing to the declining economic growth and widespread unemployment.