Applications for USA state unemployment benefits unexpectedly jumped last week and more Americans moved to longer-term aid, underscoring a recent slowing in the pace of the labor market's recovery.
Both are troubling signs for a labor market whose recovery from the pandemic was already slowing. In the meantime, tens of thousands of workers in the airline industry have been furloughed without another round of aid, and budgets for state and local governments have been busted leading to even more layoffs, which experts warn will only increase without federal dollars to keep Americans off the unemployment line.
At the same time, economists say they have grown increasingly skeptical about the government´s figures for unemployment claims, even though there is little doubt that hiring has slowed and many employers are still cutting jobs.
USA stocks fell at the open yesterday.
US stock futures and 10-year Treasury yields remained lower after the report, while the dollar was higher.
More than 800,000 New Jersey workers will begin seeing federal unemployment benefits deposited as a lump sum in their bank accounts or debit cards early next week, Gov.
Prior to the pandemic, the Tennessee Department of Labor typically reported fewer than 3,000 initial claims per week. These figures aren't adjusted for seasonal trends, so the government reports them separately from traditional jobless claims.
For the extended PEUC aid, whose figures come with a two-week lag, claims surged in many states and particularly in California, New York, Michigan and Pennsylvania.
About 3.8 million lost their jobs permanently in September, while 2.4 million remained unemployed for more than 6 months.
Workers who received at least $100 in unemployment benefits during the weeks ending August 1 to September 5 may be eligible for $300 a week for up to six weeks, or as much as $1,800.
Funds have been drying up in a stopgap benefits programme authorised by President Donald Trump, and the extended PEUC aid will expire at the end of December unless Congress acts.
However, with less than three weeks until the November 3 presidential election, an agreement is increasingly in doubt, adding risks that declining income will weigh on consumer spending.
On a more positive note, two other regional reports Thursday from the Federal Reserve showed manufacturing is sustaining its recent momentum into the fourth quarter.
The number of Americans who joined the unemployment line last week rose to 898,000, keeping new jobless claims consistently above the peak set during the financial crisis. Another 373,000 people applied for jobless aid under a seperate program for self-employed, contract work or gig workers now eligible for unemployment.
In total, 11.2mn were claiming benefits through the programme in the week ended September 26.