Business

US unemployment claims rise after Hurricane Aida, but still close to low pandemics

Numbers: US unemployment allowance applications increased in early September, a week after the pandemic downturn, partly due to hurricane Ida and could be temporary.

Claims for the first unemployment allowance for the week ending September 11 increased from 20,000 to 332,000. The government said on thursday.. Economists polled by The Wall Street Journal estimated that the new bill would total 318,000.

Last week, new unemployment claims fell to a pandemic era low of 312,000.

The latest report on the unemployed is the first since the additional federal benefits to the unemployed expired on September 6. New unemployment insurance filed through federal programs fell from nearly 100,000 last week to 28,456.

It is unclear if any of those filers will actually make money. The state could continue to pay additional benefits using federal stimulus approved by Washington earlier this year, but most chose not to.

read: The White House says they can continue to pay additional unemployment benefits

Big picture: New claims surged in Louisiana for the second straight week, reflecting the devastating damage caused by hurricane Ida. Many people were unable to work in the early stages of urban recovery.

When retreating, companies are hesitant to dismiss workers due to a significant labor shortage, and the economy is expected to recover rapidly from delta-related damage. As a result, unemployment claims continue to decline, despite the slowdown in the economy.

read: Half of all small businesses can’t find enough workers to meet open jobs

On the other hand, the loss of benefits for nearly nine million unemployed people who are making money from federal programs can put pressure on the economy in the short term. The good news is that there is a record number of open jobs waiting for people who choose to go back to work.

read: Soaring consumer prices will slow in August. Has inflation peaked?

Also: The great fear of US inflation in 2021 is not over yet

Important details: With the exception of Louisiana, new unemployed claims also showed a significant increase in Arizona and the District of Columbia.

However, new claims fell in 34 states, including significant declines in Illinois, Ohio, and Texas.

The number of people already collecting state unemployment benefits has dropped by 187,000 to seasonally adjusted 2.67 million. These so-called continuous claims are not in the era of pandemics.

As of August 28, approximately 12.1 million people were reportedly receiving benefits through eight separate state or federal programs. Federal billing data was released two weeks late.

Almost 9.3 million people were collecting money from federal programs before it expired.

Market reaction: Dow Jones Industrial Average
DJIA,
+ 0.68%

And S & P 500
SPX,
+ 0.85%

The trading on Thursday was set to open lower.

US unemployment claims rise after Hurricane Aida, but still close to low pandemics

Source link US unemployment claims rise after Hurricane Aida, but still close to low pandemics

Back to top button