Weakening of the labour market has raised fears the economy will shed jobs again in July, after sharp hiring gains in May and June
The US got another dose of bad economic news Thursday as the number of laid-off workers seeking jobless benefits rose last week for the first time since late March, intensifying concerns the resurgent coronavirus is stalling or even reversing the economic recovery. And an extra $600 in weekly unemployment benefits, provided by the federal government on top of whatever assistance states provide, is set to expire at the end of the week. It is the last major source of economic help from the $2 trillion relief package that Congress approved in March.
A small business lending program and one-time $1,200 payment have largely run their course. With the count of US infections passing 4 million and the aid ending, nearly 30 million unemployed people could struggle to pay rent, utilities, or other bills and economists worry that overall consumer spending will drop, adding another economic blow.
‘I’m broke’
“I’m going to be broke”, said Melissa Bennett, who was laid off from her job at a vacation time-share in Myrtle Beach, South Carolina. “I’ll be broke-broke. I want to go to work, I want health insurance, I want a 401K. I want a life; I have no life right now.” Without the extra unemployment benefits, Bennett will receive just $200 a week, and she’ll have to decide whether to pay her mortgage or her utilities first…Read More
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