WASHINGTON (Reuters) – millions of Americans to put down for unemployment benefits last week, more than two-months-to-employ-a-computer-of-the-country- – -with-the-corona-virus crisis, which is not affected in a second wave of redundancies in the industry, first of all, the closures caused by the pandemic.
The Ministry of labour, the weekly initial jobless claims report on Thursday, the latest data on the economy, health, also showed the number of people on unemployment rolls, surging to a record high in early may, suggesting that companies were probably not rushing to rehire the employees because they jonti.
This also raises questions about the effectiveness of the government’s’Paycheck protection” program. A broad lockdown of the country in mid-April to curb the spread of COVID-19), respiratory disease caused by the novel corona-virus, initially led to redundancies in the mostly low-wage and consumer-facing businesses, such as restaurants and retailers. But economists say it is weak demand, and has redundancies in other sectors, such as utilities, information, finance and insurance, and education causes.
“This raises the possibility that the new private-and public-sector can be saved to create to stop a major barrier to the labour market the bleeding,” said Joel Naroff, chief economist at Naroff Economics in Holland, Pennsylvania.
First claims for state unemployment benefits totaled a seasonally adjusted only 2,438 million in the week to may 16 ended at the bottom of 2.687 million in the previous week, the government said.
In last week’s reading of expectations and marked the seventh weekly decline, it was claimed, in line with the economists. For the first time, claims 6.867 million in the week ended March 28 were gradually since hitting a record. Nevertheless, they remained more than tripled their peak triple during the 2007/09 the Great recession.
To have the increased claims as a leg band on residues after ” the unprecedented amount of applications overwhelmed the state employment office.
In addition, States the processing of applications for the card, we and many others are trying, on the Federal pandemic unemployment assistance (PUA) program have now been. These workers usually do not qualify for regular unemployment insurance, but state aid for the corona virus-related job and income losses; you must be the first file for state benefits and is denied.
There is the possibility that some States will not pay for Stripping it from the PUA applications, from the original claims and after the determination of eligibility is.
“The United States can the opening, but the job market is still closed for millions in America and the loss of the income and expenses of people without jobs there will be a significant headwind for the economic recovery,” said Chris Rupkey, chief economist at MUFG in New York city.
The COVID-19 is in a crisis, has resulted in the worst job market since the Great Depression and the steepest economic downturn in more than 11 years of experience. Other data on Thursday showed home sales recorded their largest decline in nearly 10 years, in the month of April.
But the worst thing for the economy could be left. A third report from the Philadelphia Federal Reserve showed business in the mid-Atlantic region are increasingly optimistic, with the six-month Outlook, and the highest in 2-1/2 years in may.
Shares on Wall Street fell on the weak data is on the rise-China-U. S. tensions and mixed retail earnings. The dollar was steady against a basket of currencies. U. s. Treasury prices rose.
A SLOW DECLINE
Last week of registrations, the number of people lifting, who claims to unemployment benefits to approximately 38.6 million since March 21. Economists warned, this number represents the number of jobs lost due to the pandemic, in view of the technical difficulties and the procedures at the state employment office.
She also noted that this could, are people who have found jobs. In the last week, the week’s claims data covered, during which the government surveyed companies for the broker, the wage and salary part of the September lists-report to the employment. Receivables declined by 2 million between April and may survey week. The economy lost a record 20.5 million jobs from the end of April.
The attention shifts from the new candidates for the unemployed the number of people still use help. Of These, the so-called continuing claims numbers reported, with a week’s delay), but as a better measure of the labour market.
They offer an insight into how quickly the economy is faltering and the ability of the company to the people from unemployment to employment, or to keep workers on payrolls, such as you access to your share of the historic tax package to the value of almost 3 trillion dollars, the loans offered, which is partially forgiven, if they were to be used for salaries.
Continuing claims surged to 2.525 million, a new record will be, 25.073 million in the week to 9. May.
“The sharp increase in continuing claims shows that” the acceleration-or-have a lock, in many States, has not yet created callback led to the work for those who currently on temporary lay-offs,” Paul Ashworth, chief U.S. economist at Capital Economics in Toronto.
The government also reported 2,227 million claims were filed last week under the PUA program, on top of the 6.1 million applications are processed in the week ending may 2. There have been reports of Massachusetts, wrong PUA Website reported last week.
A total of 27.282 million people received benefits under the state and Federal government programs-in-the-week-end 2.
Reporting by Lucia Mutikani; editing by Chizu Nomiyama and Andrea Ricci