Along with pandemic, jobless claims surge
Mark Hamrick in Washington for Bankrate.com

Along with pandemic, jobless claims surge

Add it to the concerning headlines these days: The Labor Department reports an increase of 31,000 to 742,000 in the number of new claims for unemployment benefits in the traditional programs administered by states. That, combined with the increase in Pandemic Unemployment Assistance claims under The Cares Act, puts us at more than a million new claims.  

35 weeks, essentially eight months, since the downturn begin, the pandemic is raging on and with it, the combined toll on health, lives and the economy. 

While there are 6 million receiving benefits from the traditional programs, an additional 13 million are getting them through the federal pandemic programs.

Among states, we saw a huge increase in new claims in Louisiana, up 33,000. Other states seeing additional new claims include Texas, Ohio, California, Virginia and Arizona.

Despite suggestions that new stimulus legislation would be a top priority after the election, that appears to be one of the first promises already broken. Leaders of industry as well as the nation’s central bankers agree that something needs to be passed as soon as possible to help individuals, their families and employers avoid devastation. The idea is that something would be better than nothing. President-elect Biden has urged passage of The Heroes Act, a $2.2 trillion measure approved by the House. The Senate, under Republican control, is wary of more legislation costing over $1 trillion.

Following a surprisingly strong recovery after the steep downturn of March and April, the economy faces heightened risk as the world waits for delivery of reportedly effective vaccines providing reason for real hope. It is widely agreed that the earlier bipartisan responses from Congress and President Donald Trump, along with aggressive moves from the Federal Reserve, set the foundation for that recovery.

If Congress doesn’t act soon with the support of the president, millions of Americans face the prospect of losing their extended unemployment benefits at the end of the year, with still others in the same position early in the new year. In that context, the indication of fewer individuals receiving benefits will be anything but a sign of improvement.

In the midst of a holiday season like none experienced before, brick-and-mortar retail sales are likely to decline compared to last year, while online sales will almost certainly surge. A Bankrate survey finds that 7 in 10 consumers planned to make most of their holiday purchases online this year, up from just over half last year. That same survey finds that many Americans are taking undue risks with their online purchases, putting their personal information at risk.

The divide between the haves and have nots will further evidence itself in the relative success or survival among large companies and the fight to survive, or worse, for small firms that are less well-capitalized, essentially living on the edge.

For those who have been fortunate to remain employed, it is advised they continue to focus on the best practices for personal finances pertaining to both good times and bad. That includes paying down debt, having a budget and sticking to it and saving for emergencies and retirement.

Now, let me know your take. How are you doing with your personal finances? What is your outlook for the economy? Please share your comments in the section below. Also, take good care!

Mark Hamrick is senior economic analyst and Washington Bureau Chief for Bankrate.com. 

Follow on Twitter: @Hamrickisms

 

Howard Burnett

Future truck driver or Airlines staff

4 年

The job market is looking terrible for many Americans. The people without jobs still are struggling the most than those who still do. A stimulus check should be promise again perhaps a third one to help those worried to pay their expenses, place food on the table, spending on school necessities and such. Bad times for Americans and it will only get worse as this pandemic rages on. ??

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James Kash

Human Resources Assistant at Exxacon Desarrollos Inmobiliarios

4 年

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