The initial jobless claims declined by 19000 to 787,000 for the week ended December. The Labor Department said that the number of people filing for unemployment benefits reduced for the first time last week. According to market experts, the initial jobless claims was supposed to rise to 828,000. This has surprised many analysts in the market.
Initial Jobless Claims Decline By 19000
The number of people receiving benefits across all unemployment programs in the country dropped to 19.6 million. There are indications that the labor market is still under pressure due to the covid-19 situation.
Economists suggest that there is no real improvement in the data and the economy still continues to remain in a difficult situation. The vaccine roll-out program is moving at a slow pace, and experts are worried that it may take many more months for the economy to come back to normal condition.
Even though the availability of vaccines is good news for the economy, It is still not reflecting in the numbers. The US lawmakers had recently approved a 900 billion covid relief package that included provisions for $600 direct payments to most Americans. However, Donald Trump refused to sign the bill and said that it should be increased to $2000 in order to provide complete relief for millions of Americans suffering due to the pandemic. The bill is still pending in Congress, and it is unlikely to get passed in the next few days due to the controversies surrounding the relief package.
The republicans and democrats have linked the stimulus package along with other provisions in the bill. They are arguing over various other matters, and this has resulted in a lot of delay in passing the covid relief package. A proposal to discuss the issues separately was not agreed upon by the republicans. Given this situation, it is unlikely that Americans may receive $2000 direct payments in the next few weeks.
The Senate race in Georgia has become an important issue for this reason. Many people are hoping that the Democrats gain control over the Senate so that such important bills can be passed easily without many controversies. On the other hand, market experts are of the opinion that it is better to have the power divided among republicans and democrats so that no major changes will be made that can affect the market conditions in the future.
The economy is on the right track to see some improvement in 2021 as many industry leaders are looking forward to restarting their businesses in the next few months. As of now, two vaccines are approved by the FDA, and many more are likely to be approved in the next few months. Considering the developments in this area, it can be easily said that most Americans will be vaccinated by the end of 2021. The economy can bounce back in the next year, according to industry experts.
However, individual sectors will have to work hard to realign their businesses for the post covid era. Given the fact that mass vaccinations will still continue throughout the year, it is important to organize the business according to covid-19 restrictions. Most businesses that can afford to work from home are already implementing such strategies. On the other hand, other businesses are making suitable arrangements to secure their staff members and customers from the pandemic.
Rearranging the seating and making provisions for other safety measures is important for the retail and hotel industry. Even the travel industry is heavily relying on the availability of vaccines so that passengers can safely travel without any fear of infection. As of now, the airlines have seen good business in the last week due to the Christmas holidays. The trend is likely to continue for one more week due to the extended holidays.