Gross domestic product, or GDP, plummeted to its worst quarterly reading on record, which dates back to 1947. United States’ economic output fell by 32.9% in the second quarter. As shocking as this seems, the eye-popping number was anticipated by investors and economists alike. The second quarter is already old news and investors are looking for signs of what is to come in the third quarter and beyond. In another economic report released today, investors did get a better look at the future.
The U.S. Department of Labor released initial jobless claims this morning and it indicated that workers are still losing jobs at an alarming rate. While in line with expectations, over 1.4 million workers lost their jobs and filed for unemployment claims last week. After falling from very elevated levels, this was the second week in a row the number increased. Claims seem to be stabilizing, but at an elevated rate compared to before the pandemic when they generally averaged about 225,000 a week. The total workforce is still about 10% below pre-pandemic levels.
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