New COVID Restrictions Impacting Labor Market Again
Following a slow decline since their peak in September, jobless claims in the United States are on the rise once more. This reversal is attributed to the reintroduction of COVID-19 restrictions due to surges in cases and the stalling of stimulus talks in Congress.
According to the Department of Labor, there were 885,000 new claims for unemployment benefits for the week ending December 12. This marks the highest number of claims since the week of September 5, exceeding the expectations of economists. When considering both new and ongoing claims, a total of 20.6 million Americans are currently receiving some form of unemployment benefits as of the end of November.
Expressing concern over these statistics, Stifel chief economist Lindsey Piegza stated to CNBC, “These numbers really highlight the fragility of the labor market, especially with the resurgence of the coronavirus leading to more business closures and job losses.”
Congressional leaders are close to reaching an agreement on a $900 billion COVID-19 aid package. The bill aims to support businesses, vaccine distribution, schools, and jobless benefits. It also includes $600 payments for most Americans. https://t.co/GTsBfcleRl
— AP Politics (@AP_Politics) December 17, 2020
The latest data from John Hopkins University indicates over 247,000 new confirmed COVID-19 cases in the US, with approximately 113,000 resulting in hospitalizations and 3,600 COVID-related deaths. Congress is working towards finalizing a stimulus plan before the Friday deadline to avoid a government shutdown. The proposed package includes $900 billion in aid for individuals and businesses, with direct payments included, but an agreement has not yet been reached.
