A man reads an unemployment form, as the outbreak of coronavirus disease continues, in Miami Beach, Florida April 8, 2020. ― Reuters pic
The Federal Reserve signalled on Wednesday it would provide years of extraordinary support for the economy, with Fed Chair Jerome Powell cautioning there would an “extended period” where it is going to be “difficult for many people to find work.” Though the number of people staying on benefits is abating, the ranks of the unemployment are still uncomfortably large. The number of people receiving benefits after an initial week of aid fell 339,000 to 20.929 million for the week ended May 30. The so-called continued claims, which are reported with a one-week lag, dropped from a record high of 24.912 million in early May.
Continuing claims are being watched for signs on how quickly businesses rehire workers as they reopen after being shuttered in mid-March to slow the spread of Covid-19. “The stresses caused by the Covid-19 crisis continue to spread through the broader economy, such as supply chains and professional services,” said James Knightley, chief international economist at ING in New York. “Companies are finding that revenues and profits are not rebounding as quickly as hoped and are being forced to lay-off staff.”