Thursday, March 28, 2024

The number of initial jobless claims in the United States unexpectedly rises but remains near the low point of the epidemic | Unemployment News

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The US Department of Labor said on Thursday that as of the week of July 3, initial jobless claims increased by 2,000 to 373,000.

after Bloomberg

U.S. state unemployment insurance applications rose slightly last week, but they are still close to the low point of the pandemic, as the labor market is working towards a full recovery.

Data released by the US Department of Labor on Thursday showed that as of the week of July 3, the number of initial jobless claims in regular states increased by 2,000 to 373,000. A Bloomberg survey of economists estimated that there were 350,000 new applications.

Even with the latest growth, the number of new weekly unemployment claims has been reduced by more than half since the beginning of this year, as health problems have weakened and pent-up demand has boosted the recruitment of companies such as hotels and restaurants.

Economists expect the labor market to improve further in the second half of this year, and the unemployment rate is expected to fall below 5% in the fourth quarter.

More than half of U.S. states are ending enhanced federal unemployment benefit programs because people have been arguing whether these programs hinder recruitment.

In the week ending June 26, the number of continuing claims for continuing state benefits fell to a pandemic low of 3.34 million. This may reflect that more Americans are employed and unemployed, as the $300 weekly subsidy in many states has ended.

States including Oklahoma, Nebraska, and Indiana – which have ended pandemic unemployment assistance (PUA) for self-employed workers – did not see the first application in the program last week .

Plan to eliminate

At the same time, the first applications of Texas and Nebraska picked up last week, which may reflect that PUA has been phased out in these states and therefore attempts to transition to regular state programs.

An economist at JPMorgan Chase said: “If some people lose the benefits of one of the plans that are about to expire, they may file a preliminary claim to redefine their eligibility, but we believe that in most cases, these people Not eligible for benefits.” said in a recent note.

Pennsylvania and New York had the largest increases in the number of first-time jobless claims last week, while Oklahoma and Maryland saw the largest increase in first-time jobless claims.

The latest employment report shows that the number of employees increased by 850,000 in June, the largest increase in 10 months, indicating that the company has achieved greater success in recruiting workers to fill vacant positions a month later. Despite this, the number of job vacancies in May still hit a record high, indicating a mismatch between labor supply and demand.




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