Nashville-Davidson, Tennessee 2020-10-29 20:50:13 –
Washington (AP) — The number of Americans seeking unemployment benefits fell to 751,000 last week, the lowest since March, but still historically high, with a viral pandemic forcing many employers to cut jobs. Is shown.
According to the Ministry of Labor, applications for unemployment assistance fell by 40,000 from the previous week. They fell in 30 states, including major dips in California, Florida, and Texas. Claims increased significantly in Arizona, Illinois, and Michigan.
The increase in viral cases seen in almost every state, along with a federal aid cutoff, could undermine the economy in the coming months. When the temperature drops, restaurants and bars may have fewer customers serving outdoors. And many consumers may be more and more at home to avoid infection. These trends can force employers to cut more jobs during the winter.
According to data from Johns Hopkins University, the 7-day moving average of new cases identified in the United States has skyrocketed from 51,161 to 71,832 in the last two weeks.
The government said Thursday that the economy expanded at a record 33% annually in the July-September quarter. This is a sharp recovery after the spectacular collapse of spring when the economy shrank at an annual rate of 31.4%. Still, this increase only recovers about two-thirds of what was lost in the pandemic. And growth is expected to slow sharply in the last three months of the year, reaching an annual rate of about 3%.
Millions of unemployed Americans who will lose all their unemployed profits within the next few weeks or months as Congress disagrees with further stimulus this year could further reduce spending there is. Without another loan from the government, many SMEs will go out of business.
According to a Thursday report from the Ministry of Labor, the number of people who continue to receive unemployment benefits has dropped by more than 700,000 to 7.76 million. This decrease indicates that some of the unemployed have been recalled to old jobs or are finding new ones. But it also shows that many unemployed Americans have run out of state unemployment assistance (usually expires after six months) and have moved to a federal extended benefit program that lasts another 13 weeks. ..
The number of unemployed complaints is still increasing, emphasizing that a full recovery from the pandemic recession is still a long way off. Employment growth has slowed for the third straight month, leaving the economy still with 10.7 million jobs below pre-pandemic levels. The unemployment rate remains high at 7.9%.
Furloughs continue in some large companies. Boeing announced Wednesday that it will cut 30,000 jobs by the end of next year. This is almost one-fifth of the total workforce, since the previous announcement that it would reduce 19,000 people.
Home and car sales have emerged as bright spots in the economy, helping to strengthen US manufacturing. However, the pandemic recession, unlike previous recessions, has done far more harm to face-to-face services and has cost millions of workers’ jobs in restaurants, bars, gyms and theaters.
These companies are suffering from government closure orders, and some may come back when the virus comes back. Many people who hesitate to travel, shop, or eat out for fear of being infected with the virus, even without shutting down, exacerbate the difficulties of the face-to-face service industry.
As a symptom of caution, Americans have increased their savings during the summer, depositing most of the $ 1,200 checks paid to most individuals and the now-expired $ 600 federal unemployment allowance in banks. It was. Both were included in the $ 2 trillion stimulus package approved by Congress in the spring.
Some studies suggest that by September unemployed Americans had spent about two-thirds of what they saved. If so, the unemployed could cut their spending and slow growth in the coming months.
Americans have already expressed concern about the economy. Consumer sentiment soared in September and then fell in October. According to the Conference Board of the Business Research Group, the economic outlook for the next six months has become particularly harsh.
With nearly 20 million Americans unemployed, the pandemic recession continues to cause difficulties for many families. According to a study by the Urban Institute, a quarter of adults say their family’s financial condition deteriorated in September compared to February before the pandemic. One in seven says they or their spouse or partner lost their jobs during the recession.
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