The United States saw a small but worrying increase in unemployment claims last week, underlining the continuing struggles to recover from the mass layoffs caused by the coronavirus pandemic. 870,000 in the week ending September 19, just a small increase from the week before, but still a large number over the worst week of the global financial crisis 2008-2010. normally not qualified, only about 45,000 less than last week.
With Congress still locked in by providing more incentives to support consumers and businesses, and other data showing key sectors struggling to regain lost ground when businesses closed in March to stop Covid -19 warns economists that the state of the world's largest economy may deteriorate.
The increase in claims is "further evidence that the economy is slowing down c recovery," said Mohamed A. El-Erian of Allianz on Twitter, noting that the latest data went against analysts' expectation of a continued weekly decline this week.
But the trade department released data showing that the housing market continues its recovery undiminished, with sales of new homes in August growing above expectations at an annual rate of just over one million.
The closures of the business in March were catastrophic for the economy, leading to an increase in unemployment benefits to more than 6.8 million at the end of March and unemployment to increase.
The states' movement to reopen has led to some improvement, with claims falling below one million and unemployment at 8.4 percent in August.
The Ministry of Labor said that the insured unemployment rate, which indicates that people who actually receive benefits, fell only 0.1
In all, just over 26 million people received benefits during all the programs in the week ended 5 September.
The $ 2.2 trillion CARES law passed in March included programs to support small businesses and provide extra money to unemployed workers, but those provisions have since expired, and Democrats and Republicans are stuck on how much more help they should provide.  Ian Shepherdson of Pantheon Macroeconomics called the latest data "disappointing and ominous", warning that the endurance of the coronavirus and the dead end in Washington could hurt the economy.
"Consumer spending – almost 70% of the economy – cannot continue to increase in the last pace following the end of improved unemployment benefits, and the recent rise in Covid cases and hospitalizations … threatens to trigger renewed restrictions on economic activity, "he wrote in an analysis.
A study released by the Pew Research Center on Thursday showed the extent of the economic damage in the United States, and found that a quarter of adults said they or someone in the household lost their job due to the pandemic.
Another 25 percent have had trouble paying bills and a third have had to dive into their savings for money since the downturn began. number of such difficulties, although the study acknowledged that some respondents may have encountered these problems before Covid-19. compared to July.
Given similarly positive momentum among existing home sales, Mickey Levy of Berenberg Capital Markets said he expected "favorable demographics and pent-up demand from younger cohorts to support medium-term housing demand."