Requests for unemployment assistance in the United States have increased by 4.2 million in the last week, with which they have already exceeded 26.4 million requests in the last five weeks, due to the coronavirus epidemic. A figure that represents 16.2% of the country’s workforce. Although the figure represents a decrease from the average of 5.24 million applications of the previous four weeks, experts say that the nation has already lost all the jobs generated in the longest period of job creation in its history. From September 2010 to February this year, the United States created about 22 million jobs. “Reports show that the job market is reaching new territory, raising unemployment rates above the 10% peak reached during the Great Depression and destroying more jobs than we were able to create in the recovery,” Daniel said. Zhao, an economist at Glassdoor, a recruiting firm, according to Reuters. According to the report by the US authorities, the number of citizens receiving unemployment benefits rose from 11.91 million to 15.97 million in the week of April 11-18. This Wednesday, the president of the country, Donald Trump, celebrated that some states ruled by Republicans began to take steps towards de-escalation to reactivate their economies, despite warnings from health experts about the danger of a possible new increase in infections.
Package of Economic Relief
Congress approved and Trump enacted a package of economic relief measures worth more than 2.3 trillion dollars, which includes portions to support unemployment insurance benefits and support companies, especially small and medium-sized ones, of way they can continue to pay their employees. For its part, the Federal Reserve announced at the end of March the “unlimited” purchase of Treasury bonds and mortgage securities to keep money costs as low as possible, in an effort to ensure that financial markets continue to function smoothly. appropriate way. The COVID-19 pandemic has already caused more than 842,000 infections in the United States, while deaths are approaching 47,000.
Unemployment applications rise to 4 million AND there are only DAYS until the end of the extra aid
Unemployment shows no signs of moving on the right track during the pandemic. For the first time in three months, initial claims for unemployment insurance in the week ending July 18 were higher than the previous week as well as being above analysts’ estimates. Up to 1,416,000 requested this relief due to lack of employment, 109,000 more than in the previous week in which the figures were revised upwards. For 18 consecutive weeks, unemployment claims have exceeded one million and the progressive but slow weekly improvement has run out of steam while four million cases of coronavirus have been reached in the country and the state of California has exceeded the sad record that New York has left in the ravages of disease.
California Tips the Charts
At 292,000 unemployed claims, California is the state with the highest initial requests for assistance, followed by Florida and Georgia. Mark Hamrick, Bankrate’s chief analyst, described the figure as regrettable but not “totally surprising given the large spread of infections.” These millions of requests are joined by 975,000 more requests that are exceptionally being allowed to request to contractors, freelancers and part-time workers (gig). This is a federal aid that you do not normally have but that has been put in place by the pandemic. The only relatively good news in the jobless report released by the Labor department on Thursday is that applications for continued assistance (which are a week late from initials) fell 1.1 million to 16.2 million. But federal assistance, which includes an extra $600 payment, is about to expire. Before the end of the month, the last payment will have been made if Congress does not act and expands extraordinary aid that was launched with the CARES Act when the coronavirus closed a good part of the country’s activity.
After an opening that is now revealed as accelerated and without too many guarantees, Congress is negotiating almost on the edge of the time limit what to do with this aid. Although the Democratic proposal contained in the HEROES Act was voted in May, the Senate, mostly Republican, and the White House, have not set out to design an expansion of aid until just days ago. The Secretary of the Treasury, Steven Mnuchin said that the plan that the conservatives are negotiating is to expand the unemployment insurance offered by the states with a weekly federal contribution that would cover 70% of the salary that was collected instead of the current $ 600. “At a time when Congress and the White House should be doing all they can to assist the unemployed and affected businesses, it is an insult to add to the financial pain that new aid legislation has yet to pass in June. Washington, ”said Hamrick, who pointed out the lack of agreement among Republicans as the reason for this situation.