787,000 Cases, Down 55,000 from Previous Week
COVID-19 Still Fierce... Early Relief from Consumer Spending Pressure
[Asia Economy New York=Correspondent Baek Jong-min] The number of new unemployment insurance claims in the United States last week (October 11?17) decreased by 55,000 compared to the previous week. However, concerns remain that it is not yet time to be reassured as the novel coronavirus infection (COVID-19) continues to spread.
According to the U.S. Department of Labor on the 22nd (local time), new unemployment insurance claims last week stood at 787,000. This figure is significantly lower than market experts' expectations of 870,000.
The number of continuing unemployment insurance claims, which are claims filed for at least two weeks, also fell sharply by 1.02 million to 8.37 million, continuing the downward trend.
The announcement is widely interpreted as a positive sign indicating a gradual recovery in the U.S. labor market. However, compared to the period before the COVID-19 crisis, the level remains unusually high, and there are criticisms that the statistics have blind spots.
The Associated Press (AP) reported that although the job loss rate has somewhat eased, it still remains historically high. The New York Times (NYT) evaluated, "The number of claims remains very high, and the lack of financial support for the unemployed will pressure consumer sentiment and spending."
Some reports suggest that the recent decrease in new unemployment insurance claims may be due to an increase in unemployed individuals who have exhausted their regular unemployment benefits, which are paid for up to 26 weeks in each state.
According to the Department of Labor, claims for the Pandemic Emergency Unemployment Compensation (PEUC), which the federal government provides for an additional 13 weeks, surged by 510,000 to 3.3 million during the week of September 27 to October 3.
New claims for the Pandemic Unemployment Assistance (PUA), which supports independent contractors and gig workers (temporary workers who work under short-term contracts as needed by employers) who are not eligible for regular unemployment benefits, also increased by 345,000 compared to the previous week.
Meanwhile, the New York stock market opened higher on the day, reflecting the effect of the decrease in new unemployment insurance claims amid expectations for additional economic stimulus legislation. The Dow Jones Industrial Average rose 0.07%, the S&P 500 increased 0.2%, and the Nasdaq Composite gained 0.39%.
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