Page 11 - aruba-today-20210108

A11
BUSINESS Friday 8 January 2021
U.S. unemployment claims slip to still-high 787,000

By CHRISTOPHER RUGABER second half of the year.
AP Economics Writer The $900 billion financial
WASHINGTON (AP) — The aid package that Congress
number of Americans seek- enacted last month should
ing unemployment aid fell also help accelerate an
slightly last week to 787,000, eventual rebound. Late
a historically high number Wednesday, Goldman
that points to a weak job Sachs upgraded its fore-
market held back by the cast for economic growth
viral pandemic. this year to a robust 6.4%,
Thursday's figure from the up from 5.9%. Its upgrade
Labor Department, a slight was based in part on the
decline from the previous expectation that the Biden
week, shows that even with administration, with help
the pandemic recession in from the now-Democratic
its 10th month, many busi- Senate, will support anoth-
nesses are still laying off er rescue aid package.
workers. Before the reces- Last month's stimulus mea-
sion, weekly jobless claims sure provided a $300-a-
typically numbered around week federal jobless ben-
225,000. efit on top of an average
The renewed surge in virus state benefit of about $320.
cases has caused millions As many as half the states
of consumers to avoid eat- are now distributing the
ing out, shopping and trav- In this Dec. 14, 2020 file photo, Zeida Hernandez, of Tampa, Fla., left, makes Factory Throwout federal benefit, accord-
cigars using an antique hand-operated cigar machine at the J.C. Newman Cigar Co., Tampa's
eling. And states have im- last cigar factory, in Fla. ing to an unofficial tally at
posed new restrictions on Associated Press UnemploymentPUA.com.
restaurants, bars and other In states that take longer
businesses. Economists at ing run through much of dramatically from the sum- restrictions." to pay out the $300, any
TD Securities estimate that their cash reserves, to cut mer," said Gus Faucher, an Many economists, along missed payments can be
more than half of states are more jobs. economist at PNC Finan- with the Federal Reserve's made retroactively.
now restricting gatherings "Unemployment remains cial. "Job growth should policymakers, say they're A federal program that
to 10 people or fewer, up extremely high, although pick up in the spring as hopeful that once the provides extended bene-
from roughly a quarter in not nearly as bad as it vaccine distribution contin- coronavirus vaccines are fits, after state benefits run
September. was in the spring, and the ues, better weather allows more widely distributed, out, was lengthened to 24
Those restrictions are forc- pace of improvement in for more outdoor activities the economy will achieve weeks by the aid package.
ing many companies, hav- the job market has slowed and states gradually loosen a broader recovery in the q

Retail's online future grows brighter after pandemic bump

By DAMIAN J. TROISE has been Amazon. The on- ing members unlimited free
AP Business Writer line retailer's sales jumped delivery along with other
Online shopping has been 37% during the third quar- mobile friendly shopping
a lifeline for many as the ter of 2020 and it forecasts features that allow cus-
virus pandemic shuttered growth of between 28% tomers to scan and pay for
stores and kept people at and 38% in the fourth quar- items while they shop.
home. ter. Some large retailers started
The COVID-19 pandem- Traditional brick-and-mor- looking ahead well before
ic has accelerated the tar chains have gotten the the pandemic accelerat-
change in how people message, ramping up their ed the change in consum-
shop in a world growing online sales as more and er habits.
more comfortable and sav- more people shop remote- Home Depot started in-
vier with technology. ly rather than in stores. tegrating its in-store and
E-commerce sales' strong Walmart CEO C. Doug- online shopping options in
growth is expected to con- las McMillon said recently 2017 to take advantage
tinue long after the virus that upward trends for on- of people shifting to online In this Oct. 1, 2020 file photo, an Amazon Prime logo appears on
subsides. More importantly, line sales accelerated by ordering for both delivery the side of a delivery van as it departs an Amazon Warehouse
location in Dedham, Mass.
online sales are likely going "two to three years in some and pickup. Target started Associated Press
to take up a progressively cases" because of the virus, bolstering its online order-
bigger portion of all retail and that change will persist ing and store pickup sys- "A lot of these retailers are vices reached $434.1 billion
sales in coming years. E- beyond the pandemic. tem several years ago. now building customer loy- in 2019, according to J.P.
commerce sales are fore- "With the outbreak of CO- Both chains were punished alty and that will translate Morgan, and could hit $729
cast to account for just VID-19, the retail world by investors early on for into ongoing sales," Martis billion by 2023.
over 15% of all retail sales clicked to a fast-forward higher expenses as they said. "This is an ever evolving
in the fourth quarter of last and our ability to adapt pushed into e-commerce, Convenience is a key driv- challenge for retailers if
year, according to Refini- quickly has been crucial," but that investment is now er for online growth, and they want to stay competi-
tiv, and the share is likely he said. translating into very strong more companies are roll- tive," Martis said. "Having
to reach nearly 17% by the Walmart introduced its results, said Jharonne Mar- ing out or improving their an e-commerce strategy
end of this year. "Walmart Plus" subscription tis, director of consumer re- mobile apps. Purchases is crucial for retailers right
The clear winner in this shift option in September, giv- search at Refinitiv. made through mobile de- now."q