11.3 C
Munich

Unemployment claims in the US are falling to 12 712,000 as job cuts are reduced

Washington (AP) – The number of Americans applying for unemployment benefits fell to 712,000 last week, the lowest level since early November, indicating that fewer employers are cutting jobs as coronavirus outbreaks show signs of improving economies. in the background:

The Department of Labor announced on Thursday that applications for unemployment benefits had been reduced by 42,000 from 754,000 the previous week. Although the labor market has been slowly strengthening, many businesses remain under pressure, with ,6 9.6 million jobs lost due to the lost epidemic that flattened the economy 12 months ago.

In February, U.S. employers added a strong 379,000 jobs, the most since October, reflecting an economy where consumers spend more and states and cities ease business restrictions. Thursday’s rate, despite the lowest weekly rate in four months, showed that weekly applications for unemployment benefits remain high by historical standards. Prior to the outbreak, they had never exceeded 700,000, even during the Great Depression.

Everyone says that 4.1 million Americans receive traditional state unemployment benefits. Counting on additional federal unemployment programs designed to mitigate the economic damage caused by the virus, it is estimated that 20.1 million people are raising some of the unemployed.

Continuous redundancies reflect the extent to which the epidemic disrupted normal economic activity, keeping consumers at home rather than traveling, shopping, eating, or visiting entertainment venues. Cities and states limited the hours and capacity of restaurants, bars, and other businesses. Even when there were no restrictions, many Americans preferred to stay home for months to avoid the risk of infection.

Now, although vaccinations are becoming more common in the country, business restrictions are gradually easing, consumers are becoming more comfortable communicating face-to-face with others, and optimism about the economy is growing. Last month, consumers reversed the reduction in months and increased their spending by 2.4%. A sharp rise in seven months և is a sign that the economy may be ready to sustain recovery.

At the same time, the number of new cases of COVID-19 confirmed decreased by an average of 50,000 per day, from almost 250,000 at the beginning of January.

The bright prospects for the economy were strengthened on Wednesday when Congress finally approved a $ 1.9 trillion COVID-19 bailout bill that would pay $ 1,400 to most adults և $ 300 a week in unemployment benefits by early September. The legislation will also provide funding for viral vaccines և treatment, school reopening, state և local government և sick industry, from airlines to concert halls.

Many economists believe that a combination of substantial federal aid, a growing vaccine rate, consistently low interest rates on loans, and a willingness to spend on consumers will lead to a healthy economic recovery this year. The defeat of the coronavirus is still possible for the full recovery of the economy and the labor market.

“These are welcome policies, but they are still temporary aid,” said AnnElizabeth Konkel, a real estate lab economist. “Public health needs to be monitored in order to fully cure the labor market. “The coronavirus started this mess, it continues to cause huge economic losses every day.”

Despite the signs of economic recovery, business is far from normal. According to data firm Womply, 63% of cinemas, live music venues and other entertainment venues remain closed, as do 38% of bars, 35% of hair salons and other beauty businesses.

LEAVE A REPLY

Please enter your comment!
Please enter your name here