The Number of People Applying for Jobless Benefits Increases

( – Layoffs remain extremely low even though Americans applying for unemployment continue to increase. The jobless claims for the last week in May ended with three thousand more applicants than the week prior, according to the Labor Department.

The amount of unemployment claims is a proxy for how many layoffs have been given in a week and it can help show where the job market is headed. The pandemic caused millions of jobs to be lost but the unemployment claims have stayed relatively low for the situation. The Fed has raised its benchmark rate eleven times to help offset the effects of the pandemic.

Economists have expected that the rise in inflation would trigger a recession, but that hasn’t happened yet. Consumer demand is still strong as people continue to purchase despite high prices due to inflation.

Just last month United States employees added one hundred and seventy-five thousand jobs, which is lower than it’s been in the last six months; this could show that the labor market is starting to taper off and steady. The unemployment rate is just below four percent, which is only slightly higher than it was.

The government reported that in March, there were over eight million job openings, which is also the lowest number in three years. With there being moderation in job postings and a slowdown in wage increases this could prompt the Fed to lower interest rates back down.

Although the number of layoffs seems to be decreasing, the number of companies that are announcing job cuts is increasing. These job cuts have mainly been affecting technology companies like Apple and Alphabet, but Walmart, Peloton, and Nike are some non-tech companies that have also announced job cuts lately.

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