In last week, the unemployment of American aid had risen to 742,200, which was the first increase in the last five weeks. It was also a sign that this viral outbreak is slowing the economy of every country like the US and also forcing many companies to cutoff jobs which are leading to unemployment.
The pandemic and also the cold weather could accelerate the layoffs in the coming weeks, which are not a good sign. In the present time, near about 20 million of unemployed Americans are receiving some type of unemployment benefits, about half of them will lose those benefits when the two federal programs expire at the end of this year.
Initial unemployment claims
According to some reports, the application for jobless people aids rose from 711,000 in the last week. In the month of March, when the pandemic had first intensified, the number of unemployment had soared to 6, 90,000. The effect which is created the pandemic on the economy had started putting present on the financial market.
The modest recovery of the economy is increasingly at high risk, which is not a good sign. Also, the newly confirmed daily infection in the US had exploded 80 percent over the last two weeks to the highest level on the record. Nowadays, more and more cities are issuing mask mandates, restricting out restaurant dining, reducing capacity as well as hour of bars and of other business for slowing down this viral infection.
According to some evidence, now consumers are losing their hope and confidence in the economic outlook and are pulling back on shopping, eating, and all other activities. In October, there was only a 0.3 percent rose in the sales of retail shops which was the smallest gain since the retails shops opened in the month of April after a nationwide shutdown in March. All these reports say that the economy of the US could fall a lot.
Continuing unemployment claims
According to some reports, the extended benefits program is one of the two federal supports which are going to expire at this year’s end, which would eliminate the benefits for 9,10,000 million peoples. Congress had also so far failed on agreeing on any type of new stimulus package for the jobless individual and the struggling business. The cutoff aid would sharply get reduced income for the unemployed persons; force them to further reduction in their spending, leading to falling of economy.
One of the packages among them was the PAU, Pandemic Unemployment Assistance and the second one was the stimulus package which was provided with additional 13-week benefits for unemployed persons. According to different reports, when these benefits for an unemployed person will expire, it will create difficulties for employees as then they will be unable to pay their rents, afford food and also keep utility bills. Many economists say that the unemployed person sells their benefits fast which lee to a boost in the country’s economy.
Continued jobless claims in the US
In March and April when this pandemic erupted in the US, tens of millions of people had applied for jobless aid. Among them, many of them have landed new jobs, those who have not found any work began exhausting the six months of the state aid.
Most people among them would then have shifted to the PAU compensation program, which was providing 13 additional weeks for people. According to different people, some people had used their 13 weeks’ benefits before the year had ended up. And additional of about 9.5 million people will have to run out of 39 weeks provide by the PUA program by then.