Higher than expected US Unemployment Claims

By: Miguel A. Rodriguez

09:45, 14 September 2020

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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%.

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Sources: forexfactory.com, cnbc.com


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