(The central square) – The number of people filing new jobless claims rose last week, the latest economic indicator that worries economists.
Data released by the Department of Labor on Thursday showed that unemployment claims hit 412,000 in the week ended June 12, up from 37,000 from the previous week. This increase comes after several weeks of steadily decreasing demands.
Next week’s report will show if the latest data was an anomaly or if it could be a reversal of the previous trend.
The data comes after the White House announced a steady decline in jobless claims last week.
“Since President Biden took office, average unemployment claims have fallen and halved for the ninth straight week, and the economy has created an average of 540,000 new jobs per month,” the White House said in a statement following last week’s unemployment claims out. “Americans are returning to work and our economy is on the right track.”
California, Pennsylvania, and Illinois contributed in large part to the rise in unemployment claims.
“The highest insured unemployment rates for the week ending May 29 were in Nevada (4.6), Rhode Island (4.5), Alaska (3.9), Pennsylvania (3.9), California (3.6) , Connecticut (3.6), New York (3.6), Illinois (3.5), Puerto Rico (3.5), and District of Columbia (3.3), ”the Department of Labor announced. “The largest increases in initial claims for the week of June 5 were in Illinois (+5,715), Ohio (+2,296), Delaware (+1,720), and Tennessee (+1,159), while the largest decreases were in Pennsylvania (-23,633.) were recorded), California (-19,120), Oklahoma (-3,788), Texas (-3,299) and New Jersey (-2,985). “
The unemployment and employment figures have shown the complexity of the economic data of the past few months. Some indicators show growth, but at the same time inflation and unemployment are increasing.
Bureau of Labor statistics have reported a sharp rise in consumer prices and the prices of manufactured goods in recent days, which worries economists about a surge in inflation.
“The final demand prices rose in April by 0.6 percent and in March by 1.0 percent … on an unadjusted basis, the final demand index for the 12 months ending in May rose by 6.6 percent, the largest increase since the first calculation of the 12 -Monthly data in November in 2010, “said BLS.
The creation of jobs in the economy has also fallen short of the experts’ expectations in recent months.
Dealing with the economic problems after COVID-19 was a central topic of the debate between both political parties. Democrats argue that unemployment benefits will help keep Americans afloat and that more federal spending will fuel growth.
Republican governors blame additional federal unemployment benefits for the persistently high unemployment rate, citing widespread job availability and employers’ difficulty finding workers.
“Corporations across Florida have signs on their doors saying they are understaffed due to the ‘labor crisis’,” said Senator Marco Rubio, R-Fla., Who led the Senate’s efforts to end the 300 weekly unemployment bill US dollar was involved. “The inability to find people is a real problem and small employers across our country are struggling to do business. This legislation would help Americans get back to work and help our economy recover. “
A recent report by the Tax Foundation found that Biden’s proposed $ 6 trillion household spending could worsen the problem by shrinking the economy, shedding 165,000 American jobs, and lowering wages.
“We estimate that Biden’s spending proposals would increase long-term GDP by 0.3 percent due to improved public infrastructure,” the report said. “However, this positive economic effect is fully offset by the increase in corporate and individual taxation, which leads to less work and investment, which, in combination with spending, lowers GDP in the long term by 0.9 percent and wages by 0.8 percent and eliminated. 165,000 full-time equivalent positions. “