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US weekly jobless claims drop modestly; labor market recovery cooling The economy could be plunged into a period of uncertainty following Tuesday’s presidential election
The number of Americans filing new claims for unemployment benefits fell only slightly last week, adding to signs that the economic recovery was losing steam as the COVID-19 pandemic intensifies and fiscal stimulus ends. The economy could be plunged into a period of uncertainty following Tuesday’s presidential election, potentially undermining business investment and delaying a much-needed second coronavirus relief package from the government.
Democrat Joe Biden edged closer to victory on Thursday, while President Donald Trump alleged fraud without providing evidence, filing lawsuits and calling for recounts in a race yet to be decided two days after polls closed. “It looks like a second wave of layoffs is hitting the economy perhaps due to the rising count of virus cases, but it could also mean that many businesses are unable to reopen fully and facing bankruptcy, so they have to let their workers go,” said Chris Rupkey, chief economist at MUFG in New York. Initial claims for state unemployment benefits fell 7,000 to a seasonally adjusted 751,000 for the week ended Oct. 31, the Labor Department said. Data for the prior week was revised to show 7,000 more applications received than previously reported.Economists polled by Reuters had forecast 732,000 applications in the latest week. Claims remain above their 665,000 peak during the 2007-09 Great Recession, though they have dropped from a record 6.867 million in March…Read More