Initial Jobless Claims in the US Continue to Surpass Economists’ Forecasts

Although the US economy was beginning to show signs of a rebound, the positive sentiment is only short-lived. According to recent data released by the Labour Department, a total of 1.48 million initial jobless claims were made last week, while continuing claims reached 19.5 million. However, economists that were surveyed by Bloomberg had only predicted a total of 1.32 million and 20 million of initial and overall claims, respectively.

The unanticipated increase in unemployment numbers coincides with a resurgence of the coronavirus across parts of the country that have been ambitiously easing restrictions. Although some Americans have returned to work, the support for their respective businesses has remained relatively low. Consumers are instead opting to subdue their spending in response to the growing fear of a potential second wave of the coronavirus.

Despite the slight rebound in the US economy, the continuing unemployment claims suggests there is an even deeper-rooted problem in the US. As a result of the pandemic, deeper labour market damage is most likely present, as producers and consumers are shifting towards a post-pandemic world that is starkly different than before the pandemic. Nonetheless, economists are still forecasting improvements in the labour market; the federal government’s monthly jobs report is slated to be released next week, and it is being anticipated that a total of 3 million workers were added to payrolls for the month of June.

Information for this briefing was found via Bloomberg and the US Department of Labour. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Secures Two Additional Exploration Licenses For Flagship Project

First Majestic Posts Record Quarterly Silver Production In Q3

Related News

Demand for US Oil Could Collapse Once Again as Threat of Second Coronavirus Wave Becomes Imminent

The demand for US oil hit a disastrous low during the onset of the coronavirus...

Sunday, June 28, 2020, 12:39:00 PM

Rebound in Oil Demand Remains at Risk of Coronavirus Resurgence

As the global demand for oil dried up significantly during the height of the pandemic,...

Sunday, July 12, 2020, 07:17:00 PM

Relay Medical Forms Joint Venture To Provide COVID-19 Pandemic Response Tech

Relay Medical Corp (CSE: RELA) has formed a joint venture with that of Fio Corp...

Wednesday, August 19, 2020, 08:12:02 AM

US Auto Parts Factories Struggle to Fill Vacant Positions Despite 7.9% National Unemployment Rate

Although the auto manufacturing industry has nearly collapsed under the weight of the coronavirus pandemic,...

Monday, October 12, 2020, 01:45:00 PM

Eurozone Economy Heads For Double-Dip Recession

Following what were stringent coronavirus lockdowns enveloping Europe for much of the spring months, the...

Wednesday, November 4, 2020, 03:36:00 PM