The total US unemployment claim is likely to exceed 40 million.
Forecasts expect the weekly Labor Department’s report on unemployment claims on Thursday morning to show an additional 2.1 million applications last week, according to MarketWatch, squeezing the total 40 million since the coronavirus pandemic began to destroy the US economy in mid-March.
The latest claims can not only be the result of new layoffs, but also evidence that states are working their way through an order backlog. And congestion in some places and underestimation in others make it difficult to measure the layoffs accurately.
“When we think about what to do when the benefits expire, it would be good to know how many people actually receive them,” said Elizabeth Pancotti, a research assistant at the National Bureau of Economic Research. The Department of Labor reports may be the best source of information, she said, but they offer an “incomplete picture.”
US stock futures were vacant and global markets were higher on Thursday amid rising tensions between the US and China and expectations of another bleak report on the US labor market.
The futures markets pushed and signaled Wall Street would open flat after two days of profits. European markets grew by about 1 percent after a mixed day in Asia.
The US Labor Department’s weekly report on unemployment claims, which will be released on Thursday morning, is expected to show more than 2 million applications last week as the dismissal continues. Nearly 40 million claims have already been filed since the coronavirus pandemic took hold.
Investors also analyzed heated rhetoric between the US and China over Hong Kong, which pushed the Hang Seng index of the semi-autonomous Chinese city down 0.8 percent late on the trading day. China’s legislature on Thursday approved a plan that would extend many of China’s security practices to Hong Kong. The Trump administration on Wednesday signaled that it would likely cut off some or all of the US government’s special trade and economic relations with Hong Kong because of the move.
Shares on Wall Street have stopped higher over the past two days as investors focused on the prospects for economic recovery. The S&P 500 rose 1.5 percent on Wednesday, after rising 1.2 percent the day before. Companies that will benefit as shoppers are allowed back in the stores and people start traveling again were among the top performers in the S&P 500. Nordstrom, gap and Kohl each rose by more than 14 percent on Wednesday.
Since March, when the crisis began to close business masses, a generation of professionals have seen careers get into a state of turned off animation. The employment has dried, the advancement has ceased, job searches have been applied and new investments are being compromised. As a result, even well-connected senior officials are suddenly in unknown territory.
“There is deep uncertainty,” said Alisa Cohn, a head coach working with companies including Google and Pfizer. “We don’t just have a holding pattern. We are heading somewhere new, but we do not know what it looks like. “
In March, Hasti Nazem, 35, left a start she helped find. Two months later, the labor market has imploded, promising customers have dried up, and she is stuck in limbo. She breaks her network for introductions, but still without a full-time job.
“I mostly have Zoom conversations with strangers,” she said.
Such an order, which officials said was still being drafted and could be amended, would make it easier for federal regulators to claim that companies like Facebook, Google, Youtube and Twitter suppresses free speech when moving to suspend users or delete posts, among other examples.
The move is almost certain to meet a court challenge and is the latest ointment of President Trump in his repeated threat to crack down on online platforms. Twitter this week attached statements of fact checking on two of the president’s tweets after he made false allegations of voter fraud, and Trump and his supporters have long accused social media companies of silencing conservative votes.
White House officials said the president would sign the order later on Thursday, but they refused to comment on the contents. A Twitter spokesman declined to comment.
Nissan said on Thursday it would close facilities in Spain and Indonesia and cut global output by 20 percent as it tries to transform itself into a smaller, more efficient carmaker, a statement that comes when it reported its first annual loss in 11 years.
The Japanese carmaker said it needed to cut 300 billion yen ($ 2.8 billion) in costs as it works to recover from a year of deep sales, an extended legal battle with its former president Carlos Ghosn and a bruise that falls out with Renault, its partner in the world’s largest car-producing alliance.
Nissan’s CEO, Makoto Uchida, declined to say how many jobs would be lost due to plant closures in Spain and Indonesia.
Nissan was fighting before the pandemic hit. Sales volume decreased by 10.6 percent to the end of the fiscal year in March, which significantly exceeded the overall downturn in the global market.
On Wednesday, Nissan and Renault said they had put their differences aside when forced to come closer together to survive the worst economic crisis of a generation. To help achieve this goal, Nissan said it would need to reduce product supply and reduce production capacity through restructuring and closures.
The British low cost airline easyJet said on Thursday that it planned to reduce staff by up to 30 percent and that it expected to fly during the July-September period of nearly 30 percent of capacity a year earlier.
“We have to consider very difficult decisions that will affect our people,” said the airline’s managing director, Johan Lundgren.
The message from easyJet, which primarily serves Europe and has over 15,000 employees, comes as the company aims to resume a small number of routes across the UK and France from 15 June. three years, the statement says.
When flights restart, personnel and passengers will be required to wear masks and at least initially no on-board food service will be offered, the company says. EasyJet recently signed two loans totaling £ 400 million, or about $ 490 million, due in 2022.
As airlines emerge from coronavirus lockups, low-cost airlines across Europe are pushing airports to lower fees in return for resuming flights, as they conflict with major traditional airlines. EasyJet, Wizz Air and Ryanair are among airlines that require fee discounts or airport exemptions, Reuters reported Thursday.
Catch up: Here’s what happens.
The American division of the bakery chain Le Pain quotes filed for bankruptcy protection on Wednesday, a sign of the damage the pandemic has caused to the fast-casual industry. To keep some of its stores open, the company has proposed a sale to the restaurant company Aurify trademarks.
Social distance measures taken to stop the spread of coronavirus have damaged the sale of gums and mints, Hershey Company said on Wednesday in a statutory filing to announce a bond. Demand for some products increased when the pandemic began, but has since been planned out. The company said it expected the pandemic to have a significant impact on earnings in the second quarter, when locking orders were ordered.
The reporting was contributed by Patricia Cohen, Kate Conger, Maggie Haberman, Ben Dooley, Geneva Abdul, Mohammed Hadi, David Gelles, David Yaffe-Bellany, Carlos Tejada, Katie Robertson and Gregory Schmidt.