Amid the growing number of COVID-19 cases in the United States, there are signs of problems emerging in the job market. Government data on Thursday showed that the number of Americans applying for unemployment benefits claims has been increasing for almost four months.
In the week leading up to July 18, around 1.416 million people applied for state unemployment benefits, the Bureau of Labor Statistics reported. This was an increase of 109,000 from the previous week.
It has been alleged that rising unemployment claims are due to layoffs and employers leave workers in large parts and cities of the country in increasing COVID cases, which has resulted in the lockdown restrictions being suspended or reversed.
California, one of the countries where the number of new infections has risen steadily, received around 292,673 applications this week, an increase of around 7,759 over the previous week.
Nancy Vanden Houten, a leading US economist in Oxford, said in a note that the ongoing claims indicate that new hiring is taking place, but the same data shows that we may see a pause in this activity.
The rise in unemployment claims also shows that insecurity is increasing for the country’s unemployed workers. According to data from Glassdoor, a Jobsite, job vacancies in the country turned out to be down after a short bump in early June.
And since the federal government’s weekly unemployment benefit expires at the end of this week, tens of millions of unemployed Americans are on the verge of cutting their $ 600 incomes.
The data comes at a crucial time when Congress is debating the size and scope of a new round of virus aid bill. The house is currently pushing for a $ 1 trillion package after Democrats in the house of representatives passed a $ 3 trillion package.
On Thursday, the White House announced that it had papered differences with Senate Republicans to draft a preliminary draft that would extend the federal weekly charge, but in some cases dramatically lower.
Steve Mnuchin, the U.S. Treasury Secretary that same Thursday, said the White House is keen to get a trillion-dollar coronavirus aid bill out quickly, though it will not include the payroll tax cut that has been suggested by the US president, Mr. Donald Trump.
Mr. Mnuchin, while speaking to the reporters at the white house, previewed what the Republicans are thinking of as they negotiate with the Congress Democrats for the next round of US bailout funding. He added that the white house is working with the Senate Republican to agree on extending enhanced unemployment benefits that are set to expire this 31st July.
And when inquired whether a payroll tax cut would be incorporated in the proposal being drafted by senate republicans, he answered that not in this but they are going to come back citing that there might be another spending bill later this year.
President Donald Trump had urged that wage tax cuts be a key feature of virus control. That would have meant more money in employee paychecks.
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