Unemployment Claims-another hit for the economy

The Department of Labor released the weekly report on the unemployment claims. The containment measures are still in force, but the number of jobless people will decrease, analysts say.

Although the 6.6 million number released today is lower than last week’s, economists are expecting a monthly total of up to 15 million. It is bigger than 5.25 million expected. The total number can be millions shy of the real one, as many people lost their job because the economy suddenly shut down.

The fact that more than 701,000 jobs disappeared in March is not painting a colorful picture. It was the most significant job loss since the Great Recession and the end of the most extended job boom that began in 2010.

The aid package passed by the Congress last month allows now for part-time workers and furloughed workers to apply for claims. Moreover, businesses are advising their lowest-paid hourly workers to file for unemployment benefits. By doing this, people can get $600 extra per week for up to four months.

Economists predict that the unemployment rate will jump higher than 4.4% reported in March. Gregory Daco, a chief U.S. economist at Oxford Economist in New York, believes that the market is a traumatic period, and "we foresee the unemployment rate spiking to 14% in April."

The market was slightly off after the report was released, with USA30 losing 16 points upon market open.


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Sources: cnbc.com, forexfactory.com, reuters.com

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Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

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