America’s Job Market Takes a SUDDEN Shift For The Worse
(AmericanProsperity.com) – Before the pandemic, the economy was on the rise. Then COVID-19 came and wiped out the progress, setting the US back substantially. Since the pandemic has calmed down and businesses have reopened, America’s workforce has quickly recovered. It seems the economic surge is beginning to plateau as unemployment claims have unexpectedly jumped.
After enjoying white-hot progress, the workforce may be cooling down a bit as unemployment claims recently jumped to their highest level since the massive drop in mid-January. According to a report from the US Department of Labor (DoL), the number of unemployment claims for the week ending on June 4 rose to 229,000, a significant jump from the 202,000 the week before.
The increase was the largest since July 2021. The DoL’s 4-week average for unemployment claims also saw a slight increase, going up to 215,000 from 207,000.
While the number of people applying for unemployment has increased, the amount of Americans who have consecutively claimed benefits has hovered around 1.3 million, the lowest since December 1969, according to Fox News. To put the number in perspective, 15.38 million Americans were considered continuous claimants a little more than a year ago.
Comerica Bank chief economist Bill Adams mentioned that while employment claims are low, they’re still 63,000 higher than they were in March. Adams also pointed out that job openings have decreased, calling it “another sign” the labor market is beginning to cool down.
Jumpstarting the Economy
The US suffered a critical blow when the pandemic hit, resulting in millions of people going without jobs and little money moving into the economy. A quick vaccine rollout and massive government spending helped kickstart the recovery process. In 2021, the US economy saw a 5.7% expansion thanks to the effort.
Even so, as a result, Americans are facing the worst inflation spike in 10 years as levels hit a four-decade high. The jump has hurt American families as their buying power has deteriorated.
Plenty of Jobs
With the number of Americans applying for or already receiving unemployment benefits, it might seem as though there simply aren’t enough jobs to go around. Except that’s not the case. Bureau of Labor Statistics (BLS) indicates the number of available jobs at the end of April was 11.4 million. A separate BLS report shows that employment actually jumped by 390,000 in May, which is better than experts had predicted.
The current labor market has remained a silver lining for the United States as many people believe the country is heading into a recession. The question is whether or not the hurdle will set back all the progress the country has made. Will America be able to bounce back?
~Here’s to Your Prosperity!
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