There has been a significant increase in the number of American citizens submitting new claims for receiving jobless benefits. The number rose to around a two-month high just the previous week which has increased the fears of a crashing economic recovery as the pandemic keeps inflicting major damage on the labor market. The Labor Department issued the unemployment claims report for the week this Thursday- which was also the data that had been timed the most on the health of the economy. The report has shown that close to 25 million citizens were existing on jobless benefits when September came to an end. This definitely set in stone the flagging economic recovery after the recession- and that another stimulus package was of utmost importance.
What Does the Economic Recovery Signal towards the Trump Administration?
The hardships faced by the economy might make it even more difficult for President Trump to get back into the White House for a second term- as this would definitely be a signal of his weak administration that led to such a staggering fall in the economic recovery after recession hit America. It is only natural that Joe Biden, the former Vice President, and the main candidate of the Democratic Party has entirely put the blame on the Trump administration, calling it the worst handling of the pandemic bringing out the worst turmoil of the economy in the last 73 years.
What Are the Troubles in Such a Flagging Economic Recovery?
The Chief economist of FHN, Chris Low, mentioned that it is quite disturbing to note a continuous increase on the initial claims- simply because it is extremely difficult to view it and not consider that the economic recovery might be in extreme discomfort. The initial claims for the acquisition of state unemployment benefits has already increased from 53,000 to 898,000 at the end of October 10. The prior week had close to 5000 more applications received rather than reported. Reuters had a poll done by economists where close to 825,000 applications came in just the last week. And interestingly, California had processed no such claims for unemployment benefits, and yet the number was so high. The most populous state in the country, California had already suspended new application processing since the last week of September to take care of the growing cases of fraud. It only started accepting new applications the previous week.
The economic recovery is further in trouble due to the unadjusted claims rising quite a lot over the weeks. Economists are of the opinion that the numbers which are unadjusted are much better than numbers which are adjusted with claims of seasonal fluctuations due to the shock rendered to the economy by the pandemic.
The economic recovery continues to be in shambles, but due to the Presidential Elections currently underway, it would get really difficult for most workers to start doling out more and more economic stimulus into the economy.