US jobs recovery stalls as Washington is deadlocked on further stimulus
US jobs recovery stalls as Washington is deadlocked on further stimulus
In a sign that the jobs recovery is stalling, US initial jobless claims filed at state offices remained at 884,000 last week. Including new applications for aid under the federal Pandemic Unemployment Assistance Act, claims for jobless benefits actually rose. A deterioration in the US labor market would be accompanied by weakening wages, curtailed household spending, and a likely drop in imports from abroad. Asia would also feel the pain, as reduced overseas shipments would push down regional factory utilization rates. The slowdown in trade would also hit demand for regional petchem feedstocks and tonnage. Currently additional public stimulus is blocked by gridlock among policy makers on Capital Hill, despite calls from the IMF and others for more spending. Against such a backdrop of weakening US demand, downward pressure on chemical freights may intensify in 2H.