Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Unemployment rates in most states fell last month – but the Covid-19 jump could reverse that

Unemployment rates in most states fell last month – but the Covid-19 jump could reverse that

And this can reverse the positive trends in unemployment. In October, labor market data was sought: in Illinois, for example, the unemployment rate fell the most of all states and the District of Columbia. In September, it fell 3.6 percentage points to 6.8% from 10.4% on a seasonally adjusted basis.

This is a great development, but whether Illinois and other states can continue this trajectory is open question.

Illinois’s positive rate for Covid-19 is currently at a record high, and hospitalizations have surpassed the level reached in the spring, the state government said when it introduced its level 3 mitigation strategy. limit gatherings and encourage people to stay at home.

Economists are careful not to read too much in the monthly fluctuations in economic data. But given the growing number of infections and the state of the economy as a whole, they see a clear risk for the coming months.

“As winter approaches, I expect unemployment to rise in the food, leisure and hospitality industries, as well as in transport,”

; said Joe Bruswell, chief economist at RSM, who expects unemployment to rise in some countries due to the pandemic.

The health situation is deteriorating rapidly, forcing more and more small businesses to close, Gregory Daco, chief economist at Oxford Economics, told CNN Business in an email.

“As the fear of viruses revives and local authorities gradually introduce measures to curb the virus, mobility, activity and employment will weaken,” he added.

Nationally, the unemployment rate fell to 6.9% in October. The improvements after the 14.7% peak in the spring are undeniable. However, the country is still far from its pre-pandemic state and has had about 10 million jobs since February.

Hawaii and Nevada, both of which rely heavily on tourism and hospitality, continue to have the highest unemployment rates in the country – 14.3% and 12%, respectively.

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