Due to the unexpected increase in the number of Americans applying for unemployment benefits to the states last week, the recovery of the US job market has suffered a slowdown-this is the first increase since April.
Due to the unexpected increase in the number of Americans applying for unemployment benefits to the states last week, the recovery of the US job market has suffered a slowdown-the first increase since late April.
The US Bureau of Labor Statistics said on Thursday that the number of people applying for unemployment benefits reached 412,000 last week, 37,000 more than the 375,000 revised the previous week.
Last week’s upward trend broke the six consecutive weeks of decline in weekly unemployment benefits, which surprised many economists who expected the downward trend to continue.
But the weekly data may be noisy, and it does not necessarily indicate that a reversal of the labor market rebound is taking shape.
In fact, the 4-week moving average of weekly jobless claims that helped eliminate some of the data noise continued to decline to 395,000, which was a decrease of 8,000 from the revised average of the previous week.
As of the week of May 29, the number of people currently receiving unemployment benefits (also known as “continuous claims”) from various states has also fallen to 14,828,950, a decrease of more than 500,000 from the previous week.
Although the number of initial jobless claims each week is still close to twice the pre-pandemic reading, it has fallen sharply compared to the same period last year, when it averaged more than 1.4 million.
One big problem currently sweeping the national labor market is the number of vacancies that companies find it difficult to fill.
U.S. job vacancies A record high of 9.3 million In April, as millions of American consumers woke up from the pandemic hibernation, companies accelerated their operations to meet the huge release of pent-up demand.
The hiring struggle is suppressing job creation-this phenomenon is Latest monthly employment report This shows that the U.S. economy added 559,000 jobs in May.
Compared with last year before the blockade swept the country, the US economy still lost 7.6 million jobs—and this deficit cannot even explain the labor and economic growth since then.
Economists are divided on the reasons for the disconnect between the number of unemployed workers and employers who cannot find enough staff to fill the vacancies.
Some people believe that the federal unemployment benefit of up to $300 a week prevents the unemployed from finding new jobs. Others pointed out that as companies reopened or rapidly increased, there was a talent bottleneck. The lack of childcare services due to the continued closure of daycare centers and distance education, as well as the fear of contracting COVID-19, may also prevent unemployed workers from looking for work on the sidewalk.
Whatever the reason, unemployed Americans can continue to count on the Fed to maintain loose monetary policy to support the continued recovery of the US labor market.
On Wednesday, Fed policymakers headed by Fed Chairman Jerome Powell, Reiterate their willingness If this is what is needed to get as many Americans back to work as possible, then the inflation rate can be tolerated for a long period of time above the target 2% trend. But the Fed did advance the timetable for possible interest rate hikes from 2024 to 2023, which will cool down employment opportunities.