It appears that more Americans have to rely on unemployment benefits as new applications rose last week to their highest level since August. According to the Labor Department statistics, 240,000 unemployment claims were filed last week, an increase of 17,000 from the previous week. The four-week moving average of claims has also risen by 5,500 to 226,750.
These numbers may seem low compared to historical standards, but they still represent a worrying trend regarding job security for American workers. This comes at a time when inflation hit four-decade highs earlier this year, and the Federal Reserve has raised its benchmark interest rate six times since March. Coupled with the strain of mortgage rates that have more than doubled from a year ago, job insecurity has become an increasingly pressing issue for many Americans.
Despite this, the job market has remained surprisingly resilient. Employers added 261,000 jobs last month and are creating an average of nearly 407,000 jobs a month this year – on pace to make 2022 the second-best year for hiring (after 2021), according to government records going back to 1940. There are currently two available openings for every unemployed American, and unemployment is still at 3.7%, just a couple of ticks above a half-century low.
Meanwhile, 1.55 million people received jobless aid the week that ended November 12, an increase of 48,000 from the previous week. It’s a worrying trend that is being closely monitored by the government and economists alike, with all eyes on what could potentially be a shaky period for the US economy. Americans will have to wait and see if this upward trend in jobless claims continues or will start to level off in the coming weeks.
The question is, what will happen if the recession hits in late 2023 or early 2024? According to Forbes, 2022’s third-quarter data showed that the expected had yet to hit. However, the interest rate hike in November 2022 triggered concern among many analysts, who feared the potential of a recession in late 2023 or early 2024. The Federal Reserve has stated that they will continue to monitor the situation and take measures to prevent a recession if one seems likely. But until then, it looks like more Americans may have to rely on unemployment benefits to make ends meet – at least for now.
The Biden Administration has put forward a number of plans to help cushion the financial blow that many Americans are facing. These include an increase in the minimum wage, additional stimulus payments, and an extension of unemployment benefits. Furthermore, Biden’s $1.9 trillion American Rescue Plan includes provisions for paid sick leave and child tax credits, which will also help many people struggling financially.
The hope is that these measures will provide Americans with much needed assistance during this tough economic time. Additionally, the administration has proposed various ideas to increase job creation and bolster economic growth – such as investing in renewable energy infrastructure and expanding access to quality healthcare. Until then, many unemployed Americans must remain vigilant in searching for new jobs even as they collect their unemployment benefits. This could be a difficult period for American workers, but with continued effort and determination, there is still hope for better days ahead.
