Unemployment benefit applications fell amid the growth of the US economy

Unemployment benefits applications dropped last week to 385,000. US economy grows back to pre-pandemic levels. Vaccination against Covid-...

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  • Unemployment benefits applications dropped last week to 385,000.
  • US economy grows back to pre-pandemic levels.
  • Vaccination against Covid-19 progressed impetuously from December to May.

Amid the news that the US economy is growing back to pre-pandemic economic levels, it is announced that the weekly number of unemployment benefits applications fell last week to 385,000, compared with 399,000 the previous week, according to statistics from the portal of the Department of Labor, published by the news agency EFE.

Unemployment benefits applications, which jumped to 6.8 million in the last week of March 2020, has dropped gradually and significantly, but for several weeks now it has been stagnant at around 400,000, twice the amount of applications received in weeks leading up to the pandemic.

VACCINATION ADVANCED

Unemployment benefit
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Vaccination against covid-19, which advanced impetuously from December to May, has met with resistance from at least a third of the population, while infections have accelerated again, especially due to the delta variant, which has the debate on prevention measures reopened.

However, cases of the new variant are increasing not only in the United States but also in other countries such as Mexico where several states have gone from green to yellow and from red to red, saturating hospitals.

Unemployment benefit claims: NUMBERS

Department of Labor
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Verbatim, the Department of Labor website reported that: “In the week ending July 31, the anticipated number of initial seasonally adjusted claims was 385,000, a decrease of 14,000 from the revised level of the previous week. The level of the previous week was revised downwards by 1,000, from 400,000 to 399,000 ”.

And the Department of Labor added: “The 4-week moving average was 394,000, a decrease of 250 from the revised average of the previous week. The previous week’s average was revised downward by 250 from 394,500 to 394,250 ”.

Unemployment benefit: GDP GROWS

United States
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It was precisely on this day of the announcement of the Department of Labor, that it was reported that the Gross Domestic Product of the United States grew by 1.6% in the second quarter and places the annualized growth rate at 6.5%, its highest value since before the covid-19 pandemic.

The Office of Economic Analysis (BEA) published on Thursday the first of its three GDP calculations, according to which, in addition, the economy grew by 12.2% over the second quarter of 2020, when the pandemic caused a serious contraction of the activities. These figures demonstrate the strong pace of recovery of the world’s leading economy.

FIGURES ABOVE

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The value of economic activity now exceeds pre-COVID-19 pandemic levels reflecting the reopening of businesses, vaccinations and stimulus programs by the Government and the generous monetary policy of the Federal Reserve.

But the annualized data disappointed most US analysts in the midst of the coronavirus pandemic, who expected this rate to reach around 8.4%. Filed Under: Unemployment Benefit

CONSUMER SPENDING

Department of Labor
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Consumer spending, which is the main engine of growth, jumped in that quarter at an annualized rate of 11.8%, largely driven by government profit distributions.

The Office of Economic Analysis report shows that the GDP per capita of the United States is now $ 53,748, compared with $ 55,886 in 2019, the highest on record. Filed Under: Unemployment Benefit

JOB

United States
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The economic “stimulus packages” enacted by Presidents Donald Trump and Joe Biden have brought the world’s largest economy back to its pre-crisis value much faster than it did in the recessions of 1980, 1990, 2001, and 2007.

While the GDP, battered by the pandemic, took only four quarters to return to its previous value; After the Great Recession of 2007-2009, the country struggled for almost two years to fully recover. Filed Under: Unemployment Benefit

Unemployment benefit: EFFECT

Requests
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One effect of the stimuli is the rise in prices. According to data from the Office of Economic Analysis, it was 6.4% between April and June, compared to 3.8% in the previous quarter, indicated the authorities authorized to provide the information.

The latest monthly inflation rate published is that of June and stood at 5.4%, the highest in thirteen years. However, the Federal Reserve decided this Wednesday to keep interest rates between 0% and 0.25%, because it continues to believe that high inflation will be temporary.

Unemployment benefit: DIFFERENT FACTORS

Department of Labor
AP Photo

The economic reactivation in the United States now encounters different factors that lead analysts to expect, at least, a decrease in the rate of growth after the coronavirus pandemic that has occurred.

The unemployment rate in one of the world’s largest and most powerful countries has fallen from more than 14% in April 2020 to 5.9% in June, but is still above 3.5% prior to the COVID pandemic. Filed Under: Unemployment Benefit

WARNING

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Federal Reserve Chairman Jerome Powell warned on Wednesday that the delta variant of the coronavirus could have fewer implications for the economy if it repeats the previous spread patterns of the covid.

Although the president of the Federal Reserve indicated that we will have to wait to see what happens, he considered that possibly, this time, there will not be significant closures of activities. Filed Under: Unemployment Benefit

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