The Department of Labor reported on Wednesday that jobless claims have come down from the previous week as employers expect relief from a $ 900 billion stimulus package in Kovid-19 cases.
The number of people filing unemployment benefits for the first time decreased to 803,000, which ended on 19 December. Economists in the Dow Jones survey claimed the number of initial claims rose to 888,000.
Last week’s initial claims were revised from 7,000 to 892,000, the highest in early September.
Continuing jobless claims, a proxy for the number of people receiving benefits through regular state programs, according to the Department of Labor, fell to a seasonally adjusted 5.3 million in the week ending December 5.3 a week earlier .
The report states that all 20.4 million Americans are receiving unemployment benefits.
“With a new bill likely to sign an extension of them in terms of additional benefits and time, we’ll see how people manage the available employment opportunities relative to the size of these benefits,” Peter Bokovar, chief Investment officer wrote Blakely Advisory Group.
“For those who cannot get the work done, additional claims will obviously help them. Anyway, in the spring and summer we hope that we will see a sharp drop in all these numbers,” he said.
The latest jobless claims report came amid a dramatic demonstration between President Donald Trump and US lawmakers.
Earlier this week, Congress passed with veto-proof majorities a long-awaited, $ 900 billion relief package. The bill includes $ 600 incentive checks for most individuals and their dependents, $ 300 a week federal unemployment benefits and $ 320 billion in business relief.
Democrats say the package is a step in the right direction, but they will advocate more aid after President-elect Joe Biden takes office on January 20.
PGIM Chief Economist Nathan Sheets said, “When we’re already criticizing construction and structure, criticizing construction and structure, the bottom line is they’re spending $ 900 billion over the next few months Fixed income, a note said on Tuesday about the latest legislation.
But in a surprise tweet Tuesday evening, Trump expressed doubt whether he would sign the bill, the product of months of talks by his own Treasury Secretary Steven Menuchin.
Trump called the Kovid relief bill an inappropriate “insult” and urged congressional leaders to make significant edits to the measure, including large direct payments to individuals and families.
Based on a seven-day average calculated by CNBC using data from Johns Hopkins University, the US is recording at least 215,400 new Kovid-19 cases and at least 2,600 virus-related deaths each day.
Data from the Atlantic’s COVID tracking project showed 117,000 people hospitalized with the virus.
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