United States jobless claims have picked up since the elections and the second wave of coronavirus have slowed down the economic recovery. Uncertainty about tax increases and changes in labor laws including an increase in minimum wage add to the fear of new lockdowns as employers see the devastating effect of these lockdowns in European employment.
While the United States has been able to recover fast and reduce unemployment to 6.8%, the Eurozone jobless rate rose to 8.3% before we consider the large figure of furloughed jobs that remain idle. The second wave of coronavirus in Europe has seen new government-imposed lockdowns and the impact on the economy is already severe Estimates for the fourth quarter gross domestic product assume a double-dip recession and another increase in unemployment.
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