Konstantina Beleli, an economist, shared an article on how most economists have forecasted the US labour market to cool off until the Covid vaccines are distributed.
Jobless claims rose to 885,000 with layoffs remaining high in the previous week, indicative that the economy was entering a winter slowdown due to a rise in Covid infections and tighter restrictions on business activities, the article detailed.
Economists also found job claims to have dramatically fallen from a peak high of approximately 7 million in March, but to be gradually increasing as per the four-week moving average.
However, weekly numbers were observed to be volatile around holidays and seasonal adjustments.
Many economists expect the labour market to cool until the distribution of vaccines, which will cause a spurt in business activities and job hiring in the second quarter of 2021.
Although job claims declined in many US states last week, they continued to rise in some populous states such as California and Illinois, which are currently witnessing a rise in Covid cases and tighter restrictions, the article noted.