Since March 2020 at least 75 million Americans have filed initial jobless claims. While last week number came below the 930,000 predicted by economists, it still quite high compared to 782,000 who filed in last week of December.
Could this be a sign of slowdown of the economy or is just a reaction to the latest Covid-19 stimulus which increased benefits for those that were laid off?
Trump Administration renewed the CARES Act program that was established last March by the Congress. At the end of December, Congress passed a $900 billion relief act, which included a supplemental $300-a-week benefit as well as sent out a one-time $600 check to most Americans.
Meanwhile, President Biden has announced a $1.9 trillion stimulus plan that will extend unemployment benefits at $400 a week until September and send an additional check to Americans of $1,400.