Another 2.4 million Americans are expected to file for jobless benefits on Thursday, as an increasing number of states ease lockdown restrictions caused by the coronavirus pandemic in a bid to get their economies moving again
In the week ended 9 May 2.98 million Americans filed for jobless claims. The data was far worse than expected. Over the last eight weeks, 36.5 million Americans have filed for jobless claims.
However, the rate of jobless claims has been falling. In the week ended 9 May initial jobless claims fell below 3 million for the first time in eight weeks. Although, jobless claims are still high by historical standards.
The US unemployment rate in April climbed to a multi-decade high of 14.7% Goldman Sachs expects US unemployment rate to peak at 25%.
According to Paul Ashworth, chief U.S. economist at Capital Economics, “With most states only beginning to ease their lockdowns within the last 10 days, we expect a much bigger swing in hiring versus firing over the next couple of weeks, which suggests the unemployment rate will begin to drop back.”
Peter Boockvar, chief investment officer at Bleakley Advisory Group added: “The numbers … are still alarming of course but with more reopenings occurring in the coming months they should continue to recede.”
However, as more firms open the medical community has warned against opening the economy too soon as it may lead to a second wave of infections. Dr Anthony Fauci has warned against the dangers of opening the economy too soon.
Meanwhile, US government is expected to come up with another stimulus bill to ease the pandemic’s economic impact for businesses as well as individuals.
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