The number of Americans filing for the first time for unemployment benefits increased more than expected last week as the increase in Covid-19 infection has led to more business restrictions being imposed and a lack of fiscal stimulus that has had a greater impact on the economy.
A report released by the Department of Labor today showed that the total unemployment claims last week recorded a total reading of 853,000 claims. This reading surpasses the expectations set by the analysts of 725,000 and indicates that the recovery of the labor sector is slowing down from the effects of the Covid-19 epidemic.
The United States is facing a new wave of Covid-19 infections with the number of confirmed cases of infection surpassing 15 million on Tuesday. Several states in the U.S. have taken business measures to curb the spread of the Covid-19 epidemic.
Agreements on other economic stimulus packages have yet to be reached, with Senate Majority Leader Mitch McConnell saying Congress is still negotiating to make it happen.
More than $ 3 trillion in pandemic aid has been announced by the government to help millions of unemployed Americans cover daily expenses and help companies pay workers. However, the fiscal stimulus is almost exhausted.
The employment report released last Friday reported that the U.S. economy had successfully created 245,000 jobs in November, a small increase in the NFP since May.
A separate report shows the U.S. recorded a reading of 1.2% a year after a similar increase in October. The US dollar index declined 0.35% against major currencies as of 10.45 p.m.
