Weekly unemployment demands have fallen again in the United States, although the delta variability has slowed recovery, reaching a new low since the start of the health crisis, according to data released by the Department of Labor on Thursday.
Between August 22 and 28, 340,000 people joined the ranks of applicants for unemployment benefits. This is 14,000 less than the previous week, for which the figures were revised upwards, with 354,000 new records. This is better than expected as analysts expect 348,000 new records.
About 750,000 new jobs were created in August
On the other hand, the total number of unemployment beneficiaries in the United States has been rising for the second week in a row, to nearly 12.2 million people (+178,526), according to the most recent data released on Thursday. But unemployment claims “It says nothing about hiring speed, which seems to pay off for the delta typeSays Ian Shepherdson, economist at Pandian Macroeconomics. He expects the official August work report to be released on Friday to go in the opposite direction.With a significant slowdown in private employment growth.
Analysts estimate that 750,000 new jobs were created in August, up from nearly a million in July. The unemployment rate is expected to fall to 5.2% from 5.4% in July. This is because economic recovery in the United States is declining due to the delta type of Govt-19, which increases pollution cases. Fearing that a section of the population would be infected and spread the virus, some companies slowed down and postponed it for several months, with many companies planning to return to the office of executives who often do teleworking in September.
Another fear is that this resurgence of the virus will cut off the first months of the school year, already at home after one and a half years, virtually. This again weighs on the ability of many mothers to return to work. However, the additional unemployment benefits paid since the onset of the epidemic expire on Monday. Those who are unemployed for a long time, and are self-employed, will no longer be entitled to it, which will force them to focus less on the jobs they are looking for.
Half the states in the country took the lead, and for several weeks reduced or eliminated this aid. However, “We do not expect the outcome of additional payments to lead to an immediate increase in employment, but in the short term it is expected to weigh heavily on household income and expenses.», Nancy Vandon Houghton, economist for the Oxford Economy, warns in a note. The Biden administration has called on states with high unemployment rates to use some of the funds provided by the federal government to help the unemployed.
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