Malaysia

US weekly jobless claims remain high as second wave of layoffs hits industries

People line up outside Kentucky Career Center prior to its opening to find assistance with their unemployment claims in Frankfort, Kentucky, US June 18, 2020. — Reuters pic
People line up outside Kentucky Career Center prior to its opening to find assistance with their unemployment claims in Frankfort, Kentucky, US June 18, 2020. — Reuters pic

WASHINGTON, June 18 — A second wave of layoffs amid weak demand and fractured supply chains is keeping new US applications for unemployment benefits elevated, supporting views that the economy faces a long and difficult recovery from the Covid-19 recession.

Initial claims for state unemployment benefits totalled a seasonally adjusted 1.508 million for the week ended June 13, down from 1.566 million in the prior week, the Labor Department said today. The 11th straight weekly drop pushed claims further away from a record 6.867 million in late March.

Economists polled by Reuters had forecast 1.3 million claims in the latest week.

The weekly jobless claims, the most timely data on the economy’s health, remain incredibly high even though employers hired a record 2.5 million workers in May as businesses reopened after shuttering in mid-March to slow the spread of Covid-19.

Federal Reserve Chair Jerome Powell told lawmakers this week that “significant uncertainty remains about the timing and strength of the recovery.”

The economy fell into recession in February.

“People will say claims are coming down, but for an economy that is reopening, that is a huge number,” said Steven Blitz, chief US economist at TS Lombard in New York.

“The economy is losing workers and employment beyond the initial impact tied to businesses that shut down. There are a lot of industries that are getting hurt and that’s starting to cascade down, that is what those numbers are showing.”

From manufacturing, retail, information technology and oil and gas production, companies have announced job cuts. State and local governments, whose budgets have been shattered by the Covid-19 fight, are also cutting jobs. — Reuters

Football news:

About Lautaro Marotta: He has not shown the slightest desire to leave
Conte on 1:2 with Bologna: Inter's Level is much lower than expected
Jurgen Klopp: Liverpool need three points, not a record. You can't break a record if you think about it all the time
Klopp on 2-0 with Aston Villa: Liverpool are successful because they win difficult matches
Mane on 2-0 with Aston Villa: Liverpool deserved 3 points, but you can't expect 4-5 goals against a good opponent
Salah scored 100 (73+27) points in 116 games in the Premier League. Only Shearer reached this mark faster
Alaves Garitano dismissed after five defeats in a row. The club is in 15th place in La Liga