Higher than expected US Unemployment Claims

By: Miguel A. Rodriguez

09:45, 14 September 2020

As the number of COVID-19 cases increases, the labor market gets battered.

The latest figures released by the Department of Labor showed grim numbers once again.

In just one week, another 1.416 million people filed for unemployment benefits, and it is the first time in nearly four months when the unemployment benefits rose. The figures are higher than the 1.3 million expected. 

It marks the 17th consecutive week since the number topped one million. More than 52 million people became jobless at a quarterly level, which suggests that the labor market is stalling due to the spike in the number of COVID-19 cases.  

Today’s report showed that the number of people receiving unemployment benefits after an initial week of government aid dropped to 16.197 million, from 17.304 million in the week ended July 3.

The $600 unemployment benefits will be over at the end of July, but the Republicans are considering reducing it at $100 per week. Allegedly, lawmakers are working on another stimulus package meant to help those affected by the pandemic.

The market was quick to react, and USA30 lost 0.2%, while USA500 dropped by 0.1%. TECH100 added 0.2%.

Read more market related news on CAPEX.com!

Sources: forexfactory.com, cnbc.com

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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.