Unemployment claims in the US crept above 1 million again through mid-August

According to data released by the US Labour Department, new unemployment claims for the week ending August 15th stood at just over 1.1 million people, up 135,000 from the week before.

This data paints an unfortunately bleak picture of the US economy, where earlier expectations were predicting a figure below one million, which would have shown signs of improvement and a labour market beginning to bounce back from the devastation of the last few months.

On the contrary, the large number of new claims shows us that the US economy is still fragile, and with surges of new Covid-19 cases flaring up all over the country, the labour market is unable to rebound.

This week’s figure of 1.1 million takes the overall number of unemployment claims to over 57 million since the US economy went into lockdown back in March. Since then, the economic and social impact of Covid-19 has been relentless.

As it stands, the two major political parties are continuing to squabble over the details of a new emergency relief deal which would guarantee unemployment benefits for the millions of jobless. Not only does this mean that millions of Americans are completely without income, it also means that the wider economy is missing out on those precious dollars which would stimulate demand for all sorts of other goods and services.

THINK LIKE AN ECONOMIST!

Q1. What type of unemployment is referred to within the article?

Q2. Explain which types of jobs are most likely to have been lost during the Covid-19 crisis.

Q3. Analyse the advantages for the US government of ensuring that the unemployed are receiving monthly benefits.

Click here for the source article

TheCuriousEconomist

Recent Posts

Can Defense and Housing Turn the Tide on Sluggish GDP Growth in the UK?

The U.K. economy is still stuck in low gear. The Office for Budget Responsibility (OBR)…

5 days ago

PepsiCo Plans $1.95 Billion Poppi Acquisition

PepsiCo is planning to acquire prebiotic soda brand Poppi for $1.95 billion, marking a major…

2 weeks ago

South Africa Unveils $54.5 Billion Infrastructure Plan to Boost Growth

South Africa has announced a three-year, 1 trillion rand ($54.5 billion) public infrastructure plan aimed…

3 weeks ago

Canada Pulls U.S. Alcohol from Shelves in Retaliation for Trump Tariffs

The U.S.-Canada trade war is spilling over—literally. In response to Trump’s 25% tariffs on Canadian…

4 weeks ago

U.S. Economy on Track for Contraction as Spending and Exports Decline

Early 2025 economic data suggests the U.S. economy may be slowing down faster than expected.…

4 weeks ago

India’s Consumer Market Shrinks as Wealth Inequality Deepens

India’s consumer market is far smaller than its population suggests, with only about 130-140 million…

1 month ago