Last week the number of Americans seeking unemployment aid reached 742,000. This is the first increase in five weeks. It is indicated that the surge in coronavirus cases have slowed down the economy and has also forced many more companies to cut jobs.
As the weather becomes colder, and if the pandemic worsens, there will be more layoffs in the coming weeks. Bars and restaurants across the country are closing down again with new restrictions and curfews. Consumer demand is also falling. Twenty million Americans are now receiving some form of aid. Approximately half of them will lose unemployment benefits as two federal programs will expire at the end of the year.
On Thursday, the government said that the number of people who receive traditional unemployment benefits fell from 6.8 million to 6.4 million. A part of this fall reflects increased hiring. But another part of it shows that many of the jobless have used up their state employment aid, which is generally available for six months. They would have moved to a federal extended benefits program that would continue aid for another 13 weeks.
Two federal programs expire on December 26, 2020. Century Foundation estimates that this will cause 12 million Americans to lose benefits. Congress has to work together and extend new benefits and stimulus programs. Or else the economy will go into deep recession.
This content is being provided to you for informational purposes only. The content has been prepared by third parties not affiliated with CWEB Inc, a business. This content and any information contained therein, does not constitute a recommendation by CWEB to buy, sell or hold any security, financial product or instrument referenced in the content. This information neither is, nor should be construed as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. CWEB Inc. does not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Unless stated otherwise, the web content provided by the CWEB family of companies is for educational purposes only. The information and tools provided neither are, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. or its affiliates. Unless stated otherwise, no information presented constitutes a recommendation by CWEB Inc. or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy.