In the United States, applications for unemployment benefits hit a three-month high last week, signaling a thawing of the job market in the wake of a wave of layoffs at technology companies. The number of Americans filing for unemployment benefits increased by 17,000 to 240,000, as reported by the Labor Department on Wednesday. Bloomberg canvassed economists, and the average number they came up with was 225,000.
In the week ending November 12, there was a 48,000 rise to 1.55 million in continuing claims, which includes those who had previously received unemployment benefits for a week or more. This is the highest number since March. Those who have been collecting unemployment benefits for a week or longer are considered continuing claims. In addition, this increase was the cumulative total for the sixth week in a row.
Mass Layoffs Globally
Due to their historical significance as forerunners of recessions, economists have paid more attention to continuing claims in recent weeks. The gauge has risen from its low point in May, but it is still much below that of last year’s high and historical normal.
Rising layoffs in the tech business may not be indicative of wider economic deterioration since many tech companies expanded employment during the e-commerce boom of the epidemic period. This is because the explosion of online business happened before the pandemic.
In response to reports of an increase in U.S. unemployment claims, the leading cryptocurrency, Bitcoin, saw a 2% increase in the last 24 hours. Moreover, Ethereum rose 4% in the last 24 hours.