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US Jobless Claims: Another 2.4 million sign for benefits as states rush to restart economies

Mohit Oberoi
Author: Mohit Oberoi

Last Updated: June 18, 2020
People in line at job fair in Oregon

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.

Note: These are testing times for individuals. If you’re interested in raising finance to see you through this tough period, see our list of recommended loan providers. There is also a list of loan providers for people with bad credit.

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Mohit Oberoi

Mohit Oberoi is a freelance finance writer based in India. he has completed his MBA with finance as majors and also holds a CFA charter. He has over 13 years of experience in financial markets. He has been writing extensively on global markets for the last six years and has written over 6,500 articles. He mainly covers metals, electric vehicles, asset managers, and other macroeconomic news. He also loves writing on personal finance and topics related to valuation.

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