In the US, unemployment rates have risen sharply, according to data from the Labor Department, cited by CNBC. This happened against the background of softening support measures from the government.
For the week from September 13 to September 19, 870 thousand people applied for unemployment benefits for the first time against 860 thousand a week earlier and 850 thousand according to analysts' forecasts. The growth in the number of unemployed was recorded for the first time after a long break.
Professionals expected more Americans to return to work as the $600 per week supplemental benefit program expired. However, the situation on the labor market, which remains unfavorable, had a greater impact.
The states of New York and Georgia saw the largest increase in initial claims for benefits: nine and six thousand new claims, respectively.
Economists expect that the situation may change after Congress approves the release of a new massive aid package aimed primarily at maintaining employment. It will represent conditionally repayable loans to businesses that can become irrecoverable if the key condition is met вЂ” keeping employment at a certain level.
Support measures have been discussed in Congress in recent weeks, but representatives of the Republican and Democratic parties have not yet come to an agreement. So far, $2 trillion has been allocated from the federal budget since the start of the coronavirus crisis. Another 2.3 trillion was allocated by the Federal Reserve System under its own program.