The number of Americans seeking unemployment benefits was higher than forecast for a second straight week, adding to signs that the recovery is cooling amid a pickup in coronavirus cases.
Initial jobless claims in regular state programs fell to 1.48 million last week from an upwardly revised 1.54 million in the prior week, Labor Department data showed Thursday. Continuing claims, a closely watched figure that tracks the overall pool of recipients, declined by more than forecast to 19.5 million in the week ended June 13.
Economists surveyed by Bloomberg News had forecast Thursday’s report to show 1.32 million initial claims and 20 million continuing claims.
US stock futures fluctuated following the data. A separate report Thursday showed orders for durable goods and business equipment jumped in May by more than forecast.
The unemployment claims figures underscore the risks to the recovery from deep labour-market damage across the country.
While states have largely eased restrictions on businesses and some consumer demand has returned to support those jobs, virus cases have been resurgent in many large states and consumer spending remains subdued compared with pre-pandemic levels.
Even so, economists expect continued improvement in the hard-hit labor market; the government’s monthly jobs report next week is projected to show employers added 3 million workers to payrolls in June, following 2.5 million in May.
California had the largest increase in initial jobless claims last week, with a 45,900 rise on an unadjusted basis. Other states with significant increases included Arizona, Florida, Indiana, Maryland, Kansas, New Jersey, Nevada, Pennsylvania and Washington.
Another measure that considers total claims under all programmes — which includes the federal Pandemic Unemployment Assistance programme aimed at self-employed and gig workers — increased to an unadjusted 30.6 million in the week ended June 6. The figure includes 11 million people on PUA benefits, compared with 18.3 million on regular state benefits.
Initial claims under PUA totaled 728,120 in the week ended June 20, down from 770,920 the prior week.
Commerce Department figures on Thursday showed US orders for durable goods jumped 15.8 per cent in May, the most in nearly six years as nationwide reopenings rekindled demand for a broad range of merchandise and equipment.
The specs
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Transmission: eight-speed automatic
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Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
