For the second successive week, initial jobless claims in the US increased.
The US Labor Department reported on Wednesday that initial jobless claims increased to 778,000, far higher than the 730,000 expected by analysts. The report also showed that the previous week’s figure was revised up by 6,000 to 748,000.
Last week’s initial jobless claims figures had been the first increase for over a month. Today’s rise in weekly initial jobless claims, the second consecutive increase came as millions of Americans are still waiting for the relief bill that failed to pass Congress before the presidential election on November the 3rd.
The states that saw the biggest increases in initial jobless claims were Illinois, Michigan, and Washington. The states of Louisiana, Massachusetts, and New Jersey saw the biggest declines in initial jobless claims,
The COVID-19 Effect
The second consecutive increase in initial jobless claims in the world’s largest economy comes at a time when the pandemic continues to worsen in much of the U.S. The number of new infections is currently running at approximately 170,000 a day over the last seven days. During that time, an average of 1,500 people have died of COVID-19 every day. Meanwhile, the number of those hospitalized has surged to a record 86,000. Worryingly for the US, the number hospitalized has almost tripled since the beginning of October.
The surge in the coronavirus infection rates has forced an increasing number of the country’s hospitality sector to close along with other businesses considered non-essential, as some State Governors are now facing the very real prospect of their hospitals being overwhelmed.
Prior to the pandemic, weekly initial jobless claims would typically amount to only around 225,000. Fears are now growing of a ‘double-dip’ recession and the increased infections stalling any economic recovery the US might hope to stage.
