The number of US-unemployment claims has reduced
The number of first-timer filing for unemployment benefits has decreased to 803,000 on the 19th of December 2020. The start of the coronavirus saw millions of Americans lose their jobs.
Millions of Americans are currently on unemployment benefits
In a report by the labor department, 20.4 million Americans were receiving some kind of unemployment benefits.
Continuing jobless claims, a proxy for the number of people receiving benefits via regular state programs, also fell to a seasonally adjusted 5.3 million in the week ended by Dec. 12; falling from 5.5 million a week earlier, the report also claimed.
Fall in Unemployment claims linked to spike in coronavirus cases and $900 billion stimulus package
Economists polled by Dow Jones expected initial claims to rise to 888,000. The fall in the number of claims has been weighed by employers. They attribute the situation to a wintertime spike in Covid-19 cases against expected relief from a pending $900 billion stimulus package recently signed by Donald Trump.
Congress recently passed a $900 billion relief stimulus package. The bill includes $600 stimulus checks to most individuals and their dependents, $300-per-week federal unemployment benefits and about $320 billion in business relief. There was controversy around the bill, with Donald Trump calling it a “disgrace.”
“While we’re already hearing naysayers criticize the construction and composition, the bottom line is they’re dropping $900 billion spending into households over the next few months, and that will absolutely support the economy,” Nathan, chief economist at PGIM Fixed Income, said on Tuesday about the latest legislation.
“With a new bill likely to be signed with extra benefits and an extension of them in terms of time, we’ll see how people manage the job opportunities available relative to the size of these benefits,” wrote Peter Boockvar, chief investment officer at Bleakley Advisory Group.