U.S. weekly jobless claims rise; labour market recovery stalling – Reuters UK

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits unexpectedly rose last week for the first time in nearly four months, suggesting the labor market was stalling amid a resurgence in new COVID-19 cases and depressed demand. The weekly jobless claims report from the Labor Department on Thursday, the most timely data on…

U.S. weekly jobless claims rise; labour market recovery stalling – Reuters UK

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits unexpectedly rose last week for the first time in nearly four months, suggesting the labor market was stalling amid a resurgence in new COVID-19 cases and depressed demand. The weekly jobless claims report from the Labor Department on Thursday, the most timely data on the economy’s health, also showed nearly 32 million people were collecting unemployment checks in early July. Relentless labor market weakness puts pressure on the U.S. Congress to extend a $600 (471 pounds) weekly jobless benefit supplement, which expires on July 31. “There is no gradual and uneven recovery for the labor market,” said Chris Rupkey, chief economist at MUFG in New York. “Washington policymakers looking for signs that additional stimulus is necessary can judge for themselves with the millions and millions of jobless workers getting unemployment benefits. The economy cannot carry on for long if it has to drag almost 32 million unemployed workers with it.” Initial claims for state unemployment benefits increased 109,000 to a seasonally adjusted 1.416 million for the week ended July 18. That was the first rise in applications since the week ending March 28, when claims raced to a record 6.867 million as nonessential businesses like restaurants and gyms were shuttered to slow the spread of the coronavirus. Economists polled by Reuters had forecast applications steady at 1.30 million in the latest week. Claims tend to be volatile in summer when automakers close assembly plants for retooling. Automakers retooled during the mandatory shutdown beginning mid-March. That likely threw off the model the government uses to strip out seasonal fluctuations from the data. Unadjusted unemployment insurance claims fell 141,816 to 1.37 million last week. Including a program funded by the government for gig workers and the self employed
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