Job recoveries in the United States are slowing down, with another 709,000 Americans filed first-time claims for unemployment benefits last week on an adjusted basis, reported the Labor Department. Though, it was a smaller number than what the economists had expected.
To top it off, 298,154 workers filed for Pandemic Unemployment Assistance, a program by CARES Act to provide aid to those, especially the self-employed, who aren’t entitled to regular state aid.
Being eight months since the pandemic, the economic hardship still remains from the thousands of Americans being unable to work regularly.
According to AnnElizabeth Konkel, Indeed Hiring Lab economist, the total initial claims, even if they have decreased in number, is still five times higher than the pre-pandemic times, and that it is not enough progress.
Around 6.8 million Americans filed for benefits in the last two weeks, and economists are not looking at it in a positive light as it might be a red flag.
The other available program is the Pandemic Unemployment Assistance, where there are already reached around 9 million participants.
Long term unemployment is a risk that’s rising, and the likelihood of the people returning to labor would fall down.
Currently, a total of 21 million Americans are on the jobless benefits list through a government program, sending the charts of the American economy to fall slowly, but steadily.
Source: CNN Business