The number of filings in this program increased to 4.14 million for the week ending Oct. 24, from 3.98 million the previous week, according to the latest data available. “That’s where you see the wounds festering and worry about how deep they are and how much they’ll scar us,” Ms. Swonk said.
Most economists agree that controlling the pandemic is a prerequisite for an economic recovery regardless of any government-ordered shutdowns.
News of the development of a vaccine that is 90 percent effective lifted hopes — and markets — this week. But Mary C. Daly, president of the Federal Reserve Bank of San Francisco, said on Tuesday, “The economy right now is being dictated by coronavirus’s existence, and I think less by the potential for a vaccine.”
Several Fed officials, including the chair, Jerome H. Powell, have said Congress’s failure to agree on another relief package for individuals and business will hamper any recovery. Both federal pandemic-related jobless programs will expire at the end of the year without further action.
With the coronavirus pandemic entering its ninth month, economists warn that the prolonged downturn could inflict long-lasting wounds to U.S. employment.
“There’s a risk that we’re going to see permanent damage to the labor market,” said Rubeela Farooqi, chief U.S. economist for High Frequency Economics. She was referring to laid-off workers who end up dropping out of the work force and to industries like restaurants, entertainment, travel and hospitality that are unable to return to full capacity.
Roughly one-third of unemployed workers have been without a job for 27 weeks or more, compared with 4.1 percent in April. The longer someone is unemployed, the harder it is to get back into the work force.
Article source: https://www.nytimes.com/2020/11/12/business/economy/unemployment-claims.html
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