A setback for the economy’s recovery… The number of US aid claims increased for the first time in 4 months

Data showed the US Department of Labor released today, Thursday, an increase in the number of new applications for unemployment benefits during the past week, for the first time in 4 months, with the return of the increase in the numbers of infections with the Corona virus.

According to the Ministry of Labor data, the number of new benefits applications increased by 109 thousand to reach one million and 416 thousand new applications in the week ending July 18.

The requests for American aid amounted to about one million and 307 thousand in the previous week.

The recorded increase in new applications for unemployment benefits in the United States is the first rise in the weekly census since the benefits applications reached their peak at 6.9 million new applications in the last week of last March.

And workers, who had to leave their jobs again, joined a second wave of layoffs due to weak demand as the economy struggled with the consequences of the recession that began in February.

The rise, which exceeded analysts' expectations, indicates a setback in the recovery of the American economy, with casualties increasing at a high rate in the United States, which forced many states to re-impose restrictions in an effort to slow the spread of the epidemic.

The United States is witnessing the highest death toll in the world, and approached the barrier of 4 million injuries, while the deaths exceeded 143 thousand.

Retreat

Economists expect that job growth will decline this month after it reached a record high rate in June of 4.8 million.

Employment received support last month from the government payroll protection program, which provides loans to companies and businesses that can be partially written off if used to pay wages.

Although the program was extended until August 8, many small companies withdrew their loans last May and June.

A report forecast last month of a severe economic recession in the United States due to a new wave of the emerging corona virus.

The report called on the Trump administration not to insist on its optimistic outlook on the recovery of the economy in the coming period, stressing the need to develop contingency plans that enable it to respond quickly and effectively if the economy faltered again due to a second wave of Corona virus later this year.