WASHINGTON (Reuters) – Weak demand and a new increase in Covid-19 cases have kept new demands for unemployment benefits in the United States at an exceptionally high level, indicating that the job market will remain fragile despite record job growth in June .
The US Department of Labor said on Thursday that total new requests for adjusted government unemployment benefit in light of seasonal factors reached 1.314 million in the week ending July 4, down from 1.413 million the previous week. Economists polled by Reuters had expected applications to reach 1.375 million in the most recent week.
Requests rose to a historic peak of 6.867 million in late March. It is gradually declining, although it remains almost double the highest point recorded during the Great Recession between 2007 and 2009.
The government last week announced creating 4.8 million jobs in June, the largest number of records retained in 1939. Companies re-hire workers whose layoffs closed when institutions such as restaurants, bars, gyms, and dental clinics closed in mid-March to slow the spread of the respiratory disease.
But the resumption of operations has been accompanied by a record rise in coronavirus infections in densely populated states such as Florida, Texas and California. This led to a decline or suspension of the reopening of activities and prompted some companies to lay off workers again.
Moataz Mohamed prepared for the Arab publication