Unemployed billing surges to a high of 965,000 in five months as winter coronavirus surge hits business

Numbers: The number of Americans applying for unemployment benefits was one million in five months in early January as more workers were unemployed due to business closures and restrictions to combat the winter resurrection of the coronavirus pandemic. It surged nearby.

The government said Thursday that the first unemployment claims traditionally filed through the state increased by 181,000 in the seven days to January 9 and jumped to seasonally adjusted 965,000. It was the highest level since August.

Economists surveyed by Dow Jones and The Wall Street Journal predicted a total of 800,000 initial unemployment claims.

Another 284,470 applications were filed through a temporary federal bailout program.

Summing up the new state and federal claims, the government received 1.44 million applications last week, based on real or unadjusted figures. Since last spring, total billing has not yet fallen below one million a week.

While unemployment claims correctly reflect the increase or decrease in the unemployment rate during a pandemic, government oversight agencies also see the number of individual individuals applying for or collecting benefits due to fraud, double calculations and other issues. Was found to be increasing.

The Bureau of Labor Statistics has taken steps to improve the data, but at this time billing reports are not considered to be completely accurate. Economists say they pay attention to the direction of the claim, not the total.

read: GAO swells as unemployed claims

Also: Why Inaccurate Unemployment Claims Reports Are Still Useful for Investors

What happened: Last week, unemployment benefits applications were the highest in Illinois and Florida, accounting for most of the increase. It also surged in Kansas and California.

The record increase in coronavirus cases is a major cause of the recent rise in unemployment, but several other factors may have affected it.

For one thing, the federal government made a profit at the end of 2020 by adding $ 300 a week for the unemployed. As a result, more people may be applying or reapplying.

Read: When will unemployed Americans receive an additional $ 300 benefit?

Some companies appear to have had much less holiday employment due to the pandemic, but they also dismiss temporary workers hired on holidays.

In any case, the number of new unemployed bills is alarmingly high. Prior to the pandemic, they were running in a slump of 200,000 and did not exceed 659,000 in a week.

Meanwhile, the number of people already collecting state unemployment allowances has increased by 199,000 to seasonally adjusted 5.07 million.

Another 4.2 million people who ran out of state benefits just moved to a temporary federal program because they couldn’t find a job.

Overall, the number of people benefiting from eight separate state and federal programs was reported to be unadjusted 18.4 million as of December 26. This was a decrease of 744,511 from the previous week, the lowest level since the outbreak of the pandemic last spring.

But these numbers are also in dispute. The government’s more comprehensive monthly employment report showed that by the end of December, far fewer 10.7 million people were unemployed.

Economists say the real number of unemployed is probably in the middle.

Big picture: Progress in reducing new unemployment claims has receded in recent months. With the resurgence of the coronavirus, more companies fell to a pandemic low of 711,000 in November before closing or shortening business hours. This led to the first employment decline in December since the early stages of the pandemic.

read: The United States lost 140,000 jobs in December. How bad was it?

Economists warn that if the vaccine is slow to deploy or if the pandemic lasts much longer, many jobs can be lost forever. They say additional financial assistance from Washington can help, but it can only be done if Americans are too afraid to go out or government regulations prevent them from doing so. ..

to see: MarketWatch Coronavirus Recovery Tracker

What are they saying? Chris Zaccarelli, Chief Investment Officer of the Independent Advisor Alliance, said: “Another week of bad economic data highlights the fact that the economy is weak and the job market is deteriorating.

Market reaction: Dow Jones Industrial Average 30 kinds average DJIA,
+ 0.38%
And S & P 500 SPX,
+ 0.20%
Earlier Thursday, government spending to support the economy under the Biden administration was expected to rise.

Unemployed billing surges to a high of 965,000 in five months as winter coronavirus surge hits business

Source link Unemployed billing surges to a high of 965,000 in five months as winter coronavirus surge hits business

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