America's economy in crisis as 805 000 citizens file for unemployment benefits in December
The COVID-19 pandemic is biting hard on American citizens as multitudes continue to file for economic aids in December.
Unemployment benefits for Americans on the rise
Various claims for unemployment benefits across most of the country in December persist, according to the latest reports from the labor department. However, the job has failed to recover and keeps stalling, with more than 25 million Americans filing for various financial aids to survive. That was a decline from the ending of November statistics, but still, nearly three times the aids claimed during the same time in 2019, and this is a sign that the US job is weaker and has run into great trouble.
If it was good times, adjustments help ease finances in the economy and make it simple to read and compare. However, with the rise of the COVID-19 pandemic, this strategy hasn't worked as expected. Not looking at these adaption adjustments, initial claims were much higher -- 876,390 -- last week, although still lower than the other months.
America's Economy picture remains mixed
Looking at the economic agenda of the USA, it is fuzzy ahead of the Christmas and new year holidays. Americans' incomes were reduced by 1.2%, or $201.7 billion, in November, higher than the 0.2% statistics economists had projected.
Also, significant factors contributing to this are the terrible health situation, lower-income, reduced savings for lower earnings citizens and cold weather. “They have made American consumers keep their spending low in November," according to Gregory Daco, the chief US economist at Oxford University.
‘It is expected that the next three months will experience a gloomy economic outlook, with expectations on new and better vaccines high," he said.
Also, orders for quality products like types of equipment rose more than projected -- by 1.2% -- in November, closely followed by demands in the transportation industry. If we remove transport orders, the aggregate figures fell, according to various economic experts.
The government efforts on unemployment does not seem to pay off in a short term.