May 2, 2023
US reported a rise in weekly jobless claims. Whyâ€™s that?
The United States has reported a rise in weekly jobless claims, with the number of people filing for unemployment benefits increasing by 13,000 to a total of 861,000. This is a worrying sign for the country's economy, which has been struggling to recover from the impact of the COVID-19 pandemic.
There are several reasons why the jobless claims have risen. Firstly, the pandemic is still ongoing, and many businesses are struggling to stay afloat. This has led to a significant number of layoffs and job losses, particularly in industries such as hospitality, travel, and retail.
Secondly, the recent surge in COVID-19 cases across the country has led to renewed restrictions and lockdowns in some areas. This has further impacted businesses, particularly those that rely on in-person interactions with customers.
Thirdly, the government's stimulus measures, such as the Paycheck Protection Program (PPP), have come to an end. This means that many businesses that were able to keep their employees on the payroll thanks to these measures are now having to make tough decisions about staffing levels.
Finally, the holiday season is traditionally a time when businesses hire seasonal workers to cope with increased demand. However, this year, many businesses are not hiring as many seasonal workers due to the pandemic and the uncertain economic climate.
Overall, the rise in weekly jobless claims is a worrying sign for the US economy. It highlights the ongoing impact of the pandemic and the need for further government support to help businesses and workers weather the storm. As the country continues to grapple with the pandemic, it is likely that we will see further fluctuations in the job market in the coming months.