US unemployment and employment data

Subterms

    More stories

    • 150 Shares189 Views

      in US Politics

      Year ends on low note as 787,000 more Americans file for unemployment

      by

      [embedded content]
      Another 787,000 Americans filed for unemployment benefits in the week before Christmas, the last snapshot of 2020’s appalling jobs market before the New Year.
      Unemployment claims have been rising again in recent weeks to their highest levels since the autumn as surging coronavirus rates have slowed hiring and led to more layoffs. At current levels the weekly claims figures are almost four times their pre-pandemic average.
      The latest weekly figure from the Department of Labor was 19,000 lower than the previous week’s 803,000 claims but the average number of claims over the last four weeks is now 836,750, more than the population of the city of Seattle.
      The national unemployment rate started the year at 3.6% in January and hit a record high of 14.7% in April as the coronavirus shut down much of the US economy. The unemployment rate has since declined dramatically, it was 6.7% in November, but the recovery has been uneven with women and black, Hispanic and young people still experiencing high levels of unemployment. The numbers of long-term unemployed are rising.
      The recent increases in weekly unemployment claims signal more trouble ahead.
      According to the Economic Policy Institute, 25.7 million workers in the US remain officially unemployed, otherwise out of work due to the pandemic, or have experienced a reduction in work hours or pay.
      After months of wrangling Congress has finally brokered a deal to extend unemployment assistance to the millions laid off during the pandemic. The $900bn Covid-19 relief bill will give those receiving unemployment benefits an extra $300 a week and extends two pandemic-specific programs used by about 14 million people. But the delay in the agreement means many across the country face delays in payments and more hardship.
      Fernando Comas of Secaucus, New Jersey, worked as a video engineer in the entertainment industry before the pandemic and has been furloughed since March until at least 2021.
      Six weeks ago, his benefits were exhausted. He has been unable to receive answers from his state unemployment agency to try to resolve the issue.
      “I have a family to feed, a mortgage to pay, a car payment, and I’m a single father of two small girls who rely on me to provide for them,” said Comas, who cannot afford to find other work because his family’s health coverage is still being covered by his employer. “I’m going to lose everything, probably going to be evicted and will start to go to the food banks for food for my family.” More

    • 138 Shares189 Views

      in Elections

      US economy bounces back but deeper trends hint at enduring woe

      by

      [embedded content]
      The US economy bounced sharply back from the record-setting slump at the start of the coronavirus pandemic, according to government figures released on Thursday, handing Donald Trump a key talking point days before the election.
      According to the Bureau of Economic Analysis gross domestic product (GDP) rose at an annualized rate of 33.1% between July and September and was up 7.4% compared to the previous quarter. The previous record was a 3.9% quarterly increase in 1950.
      Trump was quick to claim credit, tweeting the figures were the “Biggest and Best in the History of our Country, and not even close.”

      Donald J. Trump
      (@realDonaldTrump)
      GDP number just announced. Biggest and Best in the History of our Country, and not even close. Next year will be FANTASTIC!!! However, Sleepy Joe Biden and his proposed record setting tax increase, would kill it all. So glad this great GDP number came out before November 3rd.

      October 29, 2020

      But the numbers show the US still has a long way to go to escape the devastation wrought by Covid-19 and were boosted by extra unemployment payments, business loans and direct payments, none of which have been replenished for the fourth quarter.
      The news comes just five days before the US election and is the last major economic release before polls close. Even before the figures were released the Trump campaign released ads boasting: “FASTEST GDP GROWTH IN HISTORY.”
      Big issues remain for the economy, however. The growth rate announcement came on the same day that the labor department announced that another 751,000 people filed for unemployment claims last week and the unemployment rate, at 7.9%, is twice as high as it was in February before the pandemic struck the US.
      A closer look at the numbers shows that the US’s economic woes are far from over. Thursday’s figures follow an equally historic slump in the second quarter. The US economy shrank by a revised annual rate of 31.4% between April and June, its sharpest contraction since the second world war, as much of the country went into lockdown to control the virus.
      The annual rate suggests the economy will continue on its current trend for the rest of the year. But such huge swings make the annualized figures misleading – no one expects such massive losses or gains to continue but most economists expect the US economy to be smaller at the end of the year than it was at the beginning.
      Gus Faucher, chief economist at PNC, said the figures represented “real growth” but added “there is still a long way to go before we get back to normal.”
      The decision to reopen much of the economy has provided a considerable boost, especially to consumer spending, which drove much of the recovery. But it comes as coronavirus infections are soaring in the US. Covid cases hit new highs over the weekend and the US now has the largest number of infections, more than 8.6m, and deaths, over 225,000, in the world.
      There are also signs that the recovery has slowed in recent months. Unemployment claims remain at historically high levels and the number of new jobs being created has dropped month on month. The economic situation for women, people of colour and teenagers remains difficult. The unemployment rate fell to 7.9% for the US population overall in September. For Black Americans it was 12.1% and for Black teens (16-19) it was over 20%.
      GDP is the broadest measure of the economy and includes personal consumption, business investment, government spending and net exports. The figure has often been criticized as a measure of economic health – GDP growth has, for example, done little to address growing income inequality.
      For some still feeling the impact of the pandemic and its attendant recession the latest GDP news was little comfort, especially as Congress remains deadlocked over further stimulus relief.
      Tim Swartz in Mesa, Arizona, stopped receiving unemployment benefits on 5 September after the unemployment office flagged an issue with his payments. When the pandemic hit he had to stop working as an Uber and delivery driver to care for his five children, including one with special needs. His wife works full-time as a medicine technician at a facility for Alzheimer’s patients.
      “I cannot get any answers from anyone on the phone or through emails. I’m behind on rent and utilities,” Swartz said. He has now received an eviction notice. “I’m not sure how we will pay the outstanding balances for rent and utilities,” he said.
      “Many of us are losing hope along with everything we have worked so hard for,” said Swartz. Three of his children had to recently return to online learning after exposure to classmates who tested positive for coronavirus, further delaying his return to work. “Without any relief package to help keep the economy going I don’t see much growth in the near future and unfortunately even darker times ahead for American families.” More

    • 113 Shares149 Views

      in US Politics

      Another 1.18m Americans file for unemployment as benefits expire

      by

      Another 1.18 million people filed for unemployment benefits last week as economists worry the expiration of enhanced unemployment benefits will lead to a sharp drop-off in household spending and set back the US economy’s near-term recovery.Claims dipped last week after two weeks of rises and were the lowest since March but the latest figure from the department of labor marked the 19th week in a row that claims have topped 1m. Before the coronavirus pandemic gripped the US, the record for weekly claims was 695,000 in October 1982.The figures come ahead of Friday’s monthly snapshot of the job market. Economists expect the unemployment rate to have dipped to 10.6% in July from 11.1% in June, a significant drop but still three times the pre-pandemic level.Americans have been receiving an extra $600 in emergency benefits since March as part of the government’s coronavirus stimulus package. But that agreement expired at the end of last month and Congress is split over a possible extension. About 30 million people have been receiving the extra cash and it has accounted for 15% of all weekly wages paid in the US.The expiration of the benefits without any replacement would likely cause a surge in evictions, hunger and poverty as well as having consequences for the wider economy.According to the Economic Policy Institute (EPI) the knock-on effect of removing that cash from the economy could be severe. The EPI estimated 5mn jobs could be lost by July 2021 if it is cut as consumers are forced to cut back on spending.“The $600 benefit is essential for millions of people to get food, to pay rent, to care for their children, to afford basic necessities. If it is cut off, it will mean a sharp decline in their living standards, an increase in poverty, and completely unnecessary suffering,” Heidi Shierholz, EPI senior economist and director of policy, wrote recently.“The spending generated by that $600 is supporting over 5m jobs. In other words, kill the $600 and you will kill 5m jobs – jobs in every single state,” she wrote.A recent paper from the JP Morgan and The University of Chicago argued that allowing the extra payment to expire could “meaningfully reduce” consumption. Eliminating the benefit “could result in large spending cuts and thus potential negative effects on macroeconomic activity”, the authors concluded.If the $600 payments expire and are nor replaced, the authors project that US consumption will 4.2% – a drop that exceeds the entire 2.9% fall in the Great Recession.🚨 new predictions of effects of alternative UI benefit supplements 🚨The UI supplements have expired. Congress is considering a range of options.What will happen to 1) *consumption*2) *UI replacement rates*Thread w/@JoeVavra @pascaljnoel pic.twitter.com/YdENQzgzBY— Peter Ganong (@p_ganong) July 31, 2020 More

    • 138 Shares119 Views

      in US Politics

      US government shelves survey that painted bleak picture of Covid-19 life

      by

      The US Census Bureau has suspended a weekly survey that painted a bleak picture of American life during the Covid-19 pandemic, with no sign of when, or if, it will resume publishing the report.The “household pulse survey” tracked various quality-of-life measures, such as food sufficiency, internet access and mental health, and was first conducted by the Census Bureau on 23 April to “quickly and efficiently deploy data collected on how people’s lives have been impacted by the Covid-19 pandemic”, according to the agency’s website.While data such as weekly unemployment claims released by the Department of Labor has shown how many people have lost their jobs, the survey provided a window into the effect the economic downturn is having on the lives of Americans.US households were asked whether they had enough food to eat and internet availability for education, if they had experienced depression or anxiety over the last seven days, and whether they felt they could afford next month’s rent or mortgage payments, among other questions.Over the past three months, the survey painted a desolate picture of what American households are experiencing during the pandemic – a picture that showed little sign of improvement.According to data collected between 16 and 21 July, more than 29 million Americans do not have enough food. Of the 7.2 million American households who did not have sufficient internet availability for educational purposes, 20% were black households and 30% were Hispanic. Over 44 million Americans said they have felt nervous, anxious or on edge nearly every day over the past seven days, while over 28 million experienced symptoms of depression.The Census Bureau described the survey as “experimental”. It was administered via a 20-minute series of online questions. The agency “scientifically selected” addresses to represent the whole US population. People from those addresses received emails with a link to the survey. Administering the survey cost the agency $1.2m, according to NPR.The survey was intended to last 90 days, with the last of the survey’s data from that period being released on 29 July. The Office of Management and Budget, the largest office in the White House, approved for the survey to be administered until the end of July. It is unclear whether the OMB will agree to let the survey continue.“The Census Bureau is working closely with the OMB to determine the possibility for a second phase of the household pulse survey. We will announce any details as soon as they are available,” a spokesperson for the agency wrote in an email to the Guardian.The bureau is currently hard at work trying to administer its once-in-a-decade census, trying to count everybody in the US amid the pandemic.The bureau has also been subject to political pressure, recently announcing it will be shortening the census deadline. Though the bureau had in April asked Congress to extend its deadline, it offered no explanation for the reversal.The move is expected to lead to an undercount of Americans, particularly communities of color and poorer Americans. More

    • 138 Shares169 Views

      in US Politics

      'Revolting': Trump condemned for saying George Floyd is praising US economy

      by

      President made the comments after better-than-expected jobs report showed national unemployment rate falling ‘Hopefully George is looking down right now and saying this a great thing that’s happening for our country,’ Donald Trump said. Photograph: Nicholas Kamm/AFP/Getty Images Donald Trump was condemned on Friday for making the “revolting, enraging, disrespectful” claim that George Floyd, an […] More

    • 225 Shares129 Views

      in US Politics

      Whatever Trump says, Americans are not dying to work – work may cause them to die | Robert Reich

      by

      No, Donald Trump, Americans are not dying to work – work may cause them to die Robert Reich The president, the Republican party and their Fox News cheerleaders care only for corporate profit Donald Trump looks through a face shield at Ford’s Rawsonville Components Plant in Ypsilanti, Michigan. Photograph: Daniel Mears/AP Most of Europe and all […] More