Numbers: The number of Americans claiming unemployment benefits rose in the second direct week, indicating that in July. In the end, economic growth may come to a halt. The number of claims has been steadily declining since peaking was reached in late March.
Primary claims for the unemployed rose 12,000 to 1.434 million in the week ending July 25, the Department of Labor said on Thursday. Economists surveyed by MarketWatch searched for 1.51 million. New lawsuits. A new federal aid program for so-called “concert” workers, such as Uber drivers, totaled 829,607 last week.
The number of people already collecting economic benefits, called permanent claims, has risen from 867,000 to 17.06 million. These claims were reported with a one-week delay. This is a sign that workers are staying on unemployment lists longer and resale has slowed. This is the first increase in ongoing claims since the end of May.
What happened: This month’s data seasonally adjusts the factors. The lawsuits take into account the annual shutdowns of car manufacturers in the summer in July, but the car factories remain open after a forced shutdown in April. However, claims remain persistently high.
Big photo: The number of layoffs increases as the virus spreads south and west and bars and restaurants are forced to cut back on operations, economists said. High in May and June. The increase in jobs has boosted optimism about the labor market, but economists are now worried that in July. Wages in agriculture may be weaker. June The economy amounted to 4.8 million. Job places. The government in July. Employment data will be provided on August 7. Federal Reserve Chairman Jerome Powell said on Wednesday that the labor market still has a long way to go.
What do they say? “The risk of temporary job loss is high due to the re-closure of companies. This could lead to an even slower pace of recovery, ”said Rubeela Farooqi, chief high-frequency economist in the United States.
Market reaction: Stocks began to decline sharply following claims on the unemployed and a historic decline in gross domestic product in the second quarter. Dow Jones industry average DJIA,
in eastern trade fell by 400 points.