Unexpected rise of the US unemployment claims

By: Miguel A. Rodriguez

12:40, 22 February 2021

1613739554.png
A labor market recovery questioned amid the high number of jobless claims

According to the latest report from the US Department of Labor, the number of Americans who filed for unemployment benefits for the first time in the past came in higher-than-expected.

In the past week, 861,000 people became jobless, topping the 775,000 expected. The high figures are raising the possibility of a second consecutive month of a tepid job growth regardless of the decline in COVID-19 infections. The highest numbers came from California, Illinois, and Ohio.

People are now waiting for the $1.9 trillion stimulus package long-touted by the current president, Joe Biden. At the end of January, 18.3 million people were getting unemployment checks, but the government-funded benefits will expire mid-March.

Following the news, stocks on Wall Street traded lower, with USA30 and USA500 losing 0.38% and 0.44%, respectively.

Read more about how the markets reacted here!

Sources: forexfactory.com, reuters.com

Share this article

This information prepared by capex.com/za is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation, or the particular needs of any recipient.You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation, or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.This information may not be published, circulated, reproduced, or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of capex.com/zaJME Financial Services (Pty) Ltd trading as CAPEX.COM/ZA acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via CAPEX.COM/ZA, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15.  Magnasale Trading Ltd is the principal to the CFD purchased by investors.