US weekly jobless claims rise further

Initial claims for state unemployment benefits unexpectedly rose to 885K in the week ending Dec 12, from upward revised 862K previous week and strongly beating 800K forecast.

Persistent surge in new coronavirus infections and subsequent tighter measures, further weaken economic recovery from pandemic recession, causing reduced income for millions of unemployed and leading to more job losses, as the United States is fighting with fresh coronavirus outbreak, with over 16 million people infected and over 300,000 dead.

Rise in jobless claims, the most timely indicator on the health of the economy, followed the report on Wednesday, which showed retail sales declined for the second straight month, add to signals that US economic recovery is slowing.

Although the jobless claims have dropped from a record 6.8 million in March, the number of claims remains above its previous peak at 665K, hit during 2008 recession, warning that recovery in labor sector struggles.

The US central bank pledged to keep ultra-low interest rates and pump more money into the economy, to support economic recovery, while US Congress came closer to agreement about new rescue package, worth $900 billion that would limit weakening in consumer spending and prevent further layoffs.