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With the job losses, the government institutionalizes aids for businesses in the form of the Paycheck Protection Program (PPP) as well as other unemployment benefits targeted to both businesses and families.
The U.S. unemployment claims remain at high levels in the previous week against the general expectations of a decline. Per the numbers reported by Reuters, the initial claims for state unemployment benefits received by the Department of Labor totaled a seasonally adjusted 884,000 for the week ended Sept. 5, matching the number of applications received in the prior week. The current U.S. unemployment forecast was pegged at 846,000 applications according to feedback from economists polled by Reuters.
The economic damages caused by COVID-19 have led to the loss of jobs rising to the tune of about 6.6 million as of early April 2020. The U.S. unemployment tally became imperative as businesses shut down in the ensuing internal lockdowns. Although the worrisome unemployment claims have reduced from its March and April lows, the unemployment claims are yet to return to its pre-COVID-19 levels.
With the job losses, the government institutionalizes aids for businesses in the form of the Paycheck Protection Program (PPP) as well as other unemployment benefits targeted to both businesses and families. The overall implication of these has pumped inflation in the economy.
While the pandemic rages, most companies particularly in the airline industry laid off staff as both local and international travel was grounded. American Airlines have also indicated readiness to cut as much as 19,000 jobs in October if the government does not extend the bailout funds it dolled out earlier.
U.S. Unemployment Tally Shows Slight Progress
As Coinspeaker reported, the data for the most jobless claims in the United States came at its peak back in March and April, the period marked by complete COVID-19 lockdowns. While a record 3.3 million Americans filed initial jobless claims for the week ended March 21. Economists that were polled by Dow Jones expect another 2.65 million people to join the figure, an estimate that was surpassed in the succeeding weeks.
The succeeding weeks in April was no way better for millions of Americans as the seasonally adjusted insured unemployment during the week ending April 11 was 15,976,000, climbing by 4,064,000 from the previous week’s revised level to hit its all-time high.
With the economy reopened and activities gradually returning to normal levels, the tally has started adjusting its most catastrophic levels. From the high levels experienced in the heat of the pandemic to the current number of 884,000, an improved level in the U.S. unemployment claims is obvious.
The ultimate return to the pre-COVID-19 unemployment levels is now largely hinged on the release of a functional coronavirus vaccine. These strides have now received a partial setback as the trials of one of the COVID-19 vaccine candidates AZD1222 being developed by the duo of AstraZeneca Plc (LON: AZN) and the University of Oxford have been halted due to signs of a serious side effect in one of the patients.