As the US economy begins to fully reopen after more than a year of closures and layoffs, new jobless claims have declined for six weeks in a row. This week, however, new claims have increased, according to Thursday (June 17). report of the Bureau of Labor Statistics (BLS).
Initial claims for the week ending June 12 were 412,000, up 37,000 from the previous week’s level, which was revised downward by 1,000 from 376,000 to 375,000.
The largest increase in initial claims for the week ending June 5 was Illinois, Delaware and Tennessee. The largest drop in claims was recorded in Pennsylvania, California, Oklahoma, Texas and New Jersey.
Economists interrogates through The Wall Street Journal forecasts that new claims for the week ended June 12 would amount to 360,000.
“More and more consumer-oriented industries that have been decimated by the pandemic are coming back online,” Adam Kamins, director of economic research at Moody’s Analytics, told the WSJ.
He thinks the normal range for unemployment should be between 200,000 and 250,000, regardless of recessions, while other economists see a normal range with totals as high as 350,000 per week, the WSJ reported. .
This week’s unemployment report is the latest period that includes federal pandemic benefits in place in all U.S. states. Several states are dropping the additional $ 300 weekly payment before the September deadline, Yahoo finance reported.
Alaska, Iowa, Missouri, and Mississippi have lowered or reduced benefit increases, and other states are following suit. One of the motives for cutting federal payments is to get more people back into the workforce as labor shortages grow nationwide.
“Most industries are reporting serious labor shortages, but that could even go away by fall as pandemic-era unemployment benefits are cut and schools reopen allowing parents to get back to work, ”said Anu Gaggar, senior global investment analyst for Commonwealth Financial Network Yahoo finance.
New jobless claims fell below 500,000 on May 6, the first time since the start of the pandemic.