Jobless claims are constantly being monitored by millions of financial analysts and agencies around the world, and for good reason. For the past few months, the numbers have remained well above 750,000 since the pandemic began.
Unemployment caused by the pandemic was it its highest point in March at 6.9 million claims, but it has since receded at a faster pace than the current month of October. In the past month, the numbers have only dropped by less than 100,000.
This is because more and more people are being forced out of jobs and left to fend for themselves in an unforgiving economy made unstable by the response to the pandemic.
However, these claims are slightly different from unemployment benefits numbers. Unlike the latter, jobless claims are more of one-time request.
It is not continuous, and does not span over a number of weeks compared to normal unemployment benefits.
The Initial Jobless Claims is a report released every week, and the information is gotten from unemployment agencies who relay the information to the Unemployment Insurance Department of the U.S labor Department.
The pandemic has caused a lot of economies around the world to regress in terms of development and day-to-day transactions.
As a result, most companies have been left with no choice but to perform budget cuts to stay afloat.
These include closing down their businesses, cutting production costs, and lay-off of employees.
This has affected a lot of individuals and families, which have caused people to file for Jobless claims.
The U.S government has stated that Jobless Claim help is going to become harder and harder to get due to inflation problems that are afflicting the U.S economy.
In a turn of events, the rate at which Americans that were applying for jobless claims went down a little in October.
Although this fall is slightly renewing hopes for a U.S economic recovery, this has been the first time since the pandemic that it has only slightly dropped. Currently, it is on a slow decline, which hints at another rise of claims and more people being laid off by their companies.
When you look at this in more detail, the Initial Jobless claims filed through different unemployment agencies in the country went down to 840,000 in the first week of October( at the end of Oct.3).
The previous week, it was on a big number at 849,000 claims as reported by the Labor Department on Thursday, October 8, 2020.
Economists and Financial Analysts are predicting that Jobless claims might likely fall to figures as low as 820,000 by the end of the month.
This pandemic has recorded the highest jobless claims in the last several decades, including the severe 2007-2009 recession.
Inflation is affecting the economy of the United States, and as feared, it does not seem to be coming to a standstill, as the country is still struggling to get back on its feat since the pandemic.
Analysts are divided on the effect this slight change would have on the current job claim figure and the economy.
Some analysts believe that this figure would only continue to reduce gradually, but surely. This is because they believe that the recovery of the U.S economy is imminent, and the effects and spread of the coronavirus is gradually wavering.
Employees are coming back to work; businesses are opening up again, which would positively affect the inflation for a long period.
Others think that because this figure only slight fell, it points out the possibility that layoffs and inflation is about to rise sharply.
The pandemic has been a long, drawn-out incident that is still affecting millions negatively. High profile companies in industries like Entertainment and Fashion have made statements that say they would have to further downsize more jobs permanently.
Before this, most companies only downsized with a plan to rehire as soon as inflation reduces. Now, this does not seem to be in their plans, as they are lacking financial response from customers, investors, and even the government.
Some even worry that this economic recovery plan would fail. When it does, the government would not have enough funds to plan another referral relief package.
Additionally, without a current relief package, more people would begin to file more claims and thus, increasing the numbers to the highest it would be in three months since the pandemic, projected to be above 1,000,000.
An additional 464,437 filed claims under the Pandemic Unemployment Assistance Act. This was a federal law meant to assist self-employed people and allow them to also benefit from the relief package.
Although this was a one-time thing, it just makes financial analysts understand how bad the inflation rates have gotten.
Things have gotten more expensive, more jobs are being lost, and more relief packages need to be sent out by the government.
American states like Florida, Illinois, and Virginia have recorded the highest rates of jobless claim filing.
This is due to the high standard of living, and a high population of people in those states. To top it all off, companies in those states have high downsize rates and have shut down indefinitely.
In States like New Jersey and Pennsylvania have recorded the lowest cases due to reopening of businesses and re-employment.
Several efforts have been made to control inflation. Recently, the Federal Reserve System—Fed— has suggested a strategic plan that involves sticking with the inflationary tack.
They believe this would create more jobs in the long run, and reduce inflation. It has been met with mixed responses and reviews. Most analysts think that this is a lethargic approach to handle the current situation.