Wall Street is bracing for an extended break as the latest jobless claims data confirms the weakness of the labor market. Meanwhile, Canada’s job market is showing promise, providing a glimmer of hope for the North American economy.
The latest jobless claims data from the United States Department of Labor shows that 1.3 million Americans filed for unemployment benefits in the week ending July 11. This marks the 17th consecutive week that jobless claims have exceeded one million, highlighting the ongoing impact of the COVID-19 pandemic on the US economy.
The high number of jobless claims is a cause for concern for Wall Street, as it suggests that the economic recovery may be slower than anticipated. Many businesses have been forced to close or reduce operations due to the pandemic, leading to widespread job losses.
The weak labor market is also likely to impact consumer spending, which is a key driver of economic growth. With many Americans out of work or facing reduced hours, they may be less likely to spend money on non-essential items, further slowing down the economy.
However, there is some good news coming out of Canada. The country added 952,900 jobs in June, according to Statistics Canada. This is a significant increase from May, when the country added 289,600 jobs.
The job gains were largely driven by businesses reopening after being closed due to the pandemic. The service sector saw the biggest increase in employment, with 592,000 jobs added. The goods-producing sector also saw gains, with 360,900 jobs added.
The strong job market in Canada is a positive sign for the North American economy as a whole. While the US continues to struggle with high jobless claims and a weak labor market, Canada’s job market is showing signs of recovery.
However, it’s important to note that the pandemic is far from over and there are still many uncertainties ahead. A resurgence of cases could lead to further business closures and job losses, while ongoing trade tensions between the US and Canada could also impact the economy.
Overall, Wall Street is preparing for an extended break as the jobless claims data confirms the weakness of the labor market. While Canada’s job market is showing promise, it remains to be seen how the North American economy will fare in the coming months.
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