The number of Americans filing for job claims has continued to rise. The labor department is worried that this trend will affect future economic forecasts.
More Americans file unemployed benefits in major US cities
The number of unemployed Americans is swelling at a high rate last week as there is a slight marginal increase in unemployment claims. This seems to be the case in the labor market because of the second wave of the COVID-19 pandemic.
According to the report released by the Department of Labor on Thursday, the numbers have jumped up. The jobless claims have dipped unexpectedly, however, the barometer of the labor market jobless statistics close to one million.
This weekly report on jobless claims is an indicator of an economy that has been seriously battered by the coronavirus which has forced several workers to lose their jobs. Also, some workers have had their salaries slashed up to 50% despite economic policies rolled out to mitigate the effects.
“ The initial claims are still high despite vaccination development, but we are still hopeful of seeing some drops in three months as lockdown restrictions relax in some states” Peter Boockvar, a financial analyst with Bleakley Advisory firm says.
“ Also, what is keeping these figures high might be the $300 federal stimulus benefits which offer about 60% of US citizens to claim money despite earning at their jobs”
Biden’s administration promises more unemployment benefits
Although the new Job Biden administration promised nearly $3m trillion in added stimulus benefits, major economic changes are not expected until the second quarter of the year. According to JP Morgan economist Daniel Silver, "these data claims look consistent with Labor market indices which are tied to the increase in Covid-19 cases".
The total number of Americans that have received benefits claims has reached about 26 million to date. States like Ohio, Florida, Rhode Island, and Maryland are at the top of the ladder of stimulus benefits claims.