Jobless Claims Increase to 412,000, Above Economists’ Projections

Photo “Unemployment Insurance Claims Office” by Bytemarks. CC BY 2.0.
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by Thomas Catenacci

 

The number of Americans filing new unemployment claims increased to 412,000 last week as the economy continues to recover from the coronavirus pandemic, according to the Department of Labor.

The Bureau of Labor and Statistics figure released Thursday represented an increase in the number of new jobless claims compared to the week ending June 5, when 375,000 new jobless claims were reported. That number was revised down from the 376,000 jobless claims initially reported last week.

Economists expected Thursday’s jobless claims number to come in around 360,000, The Wall Street Journal reported.

“More and more consumer-facing industries that were decimated by the pandemic are coming back online,” Moody’s Analytics director of economic research Adam Kamins told the WSJ.

Jobless claims had hit a new pandemic low for eight consecutive weeks prior to Thursday’s report. Claims haven’t dipped below 256,000 since March 14, 2020.

Roughly 14.8 million Americans continue to collect unemployment benefits, according to the report.

Claims sinking to the 200,000s would be an indicator the economy had ultimately returned its normal level, Kamins added, according to the WSJ.

The U.S. economy added 559,000 jobs in May, but just 266,000 in April, according to the Labor Department. The meager job growth caused Republican-led states to begin withdrawing from the federal $300 weekly unemployment bonus implemented by Democrats’ $1.9 trillion stimulus package.

More than 20 states including Florida, Texas, South Carolina, Arizona and Alabama have announced their withdrawal from the federal unemployment program, Business Insider reported. Job vacancies hit a record high this spring, surpassing 9 million at the end of April, according to a recent Labor Department report.

Meanwhile the Consumer Price Index, a common inflation measurement, increased more between June 2020 and May than it has in any other 12-month period since August 2008, recent government data showed. American consumers’ fear of inflation has hit new highs as gasoline, food, health care and home prices have ticked up in recent months.

“We expect there to be ups and downs,” Director of the National Economic Council Brian Deese said during remarks reacting to the May jobs report on June 4. “We expect there to be bottlenecks as we turn this economy back on.”

“And our focus, the President’s focus, is on executing an economic strategy that is working — we see that in the data from today — but to be patient and think to the long term about what the American economy needs and the American workers need as well,” he continued.

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Thomas Catenacci is a reporter at Daily Caller News Foundation.
Photo “Unemployment Insurance Claims Office” by Bytemarks. CC BY 2.0.

 

 

 

 

 

 


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5 Thoughts to “Jobless Claims Increase to 412,000, Above Economists’ Projections”

  1. 83ragtop50

    I encourage all employers to pay an equitable wage for the skill required for a specific job. Paying more than that simply hurts business, customers and eventually all employees. The results of overpaying are inflated prices and often substandard work quality.

    1. Ms Independent

      Employers must find a way to keep their employees morale up or they will lose business and this equates to good salary and benefits.

  2. Ms Independent

    So nice of mr lee to play politics and take away the federal unemployment payments to those struggling to find suitable work. And to those employers saying they have a labor shortage- pay a decent wage with healthcare benefits! I’m sick of seeing restaurant managers whining about no help while paying employees scraps! Same goes for hotel and retail! Pay a full time living wage and provide benefits!

  3. Ms Independent

    I’m not surprised. Basement Biden is a jobs killer!
    Stopping the federal unemployment payments right now is also a mistake. Both political parties are hurting the American workers.

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