Trump is running out of time for the “V-shaped” recovery to begin.
According to the Wall Street Journal:
The number of workers seeking jobless benefits was steady at a historically high 1.5 million as the job market’s slow recovery faced new infections that could impede getting people back to work.
Applications for unemployment benefits have slowly eased from a late March peak of nearly 7 million but also remain well above pre-pandemic levels. Meanwhile, the benefits total, known as continuing claims, was 19.5 million in the week ended June 13 the Labor Department reported Thursday, also stabilizing near a historically high 20 million seen in previous weeks.
While the figures have offered signs the labor market is slowly healing, economists say a recent increase in coronavirus cases could affect efforts to reopen the economy and get people back to work.
“We’re seeing a slowdown in layoffs, but hiring hasn’t picked up a tremendous amount,” said Nick Bunker, economist at the job site Indeed. “The recovery from this is going to potentially be a very long slog if we can’t get the virus under control quickly.”
States where the coronavirus is spreading the most are experiencing a slowdown in economic activity, according to Jefferies. Some states, such as Arizona, Texas and Utah, are seeing contractions in activity, Jefferies added.