U.S. filings for unemployment benefits rose again last week and appear to be settling consistently at a slightly higher though still healthy level.
Jobless claims for the week ending July 13 rose by 20,000 to 243,000 from 223,000 the previous week, the Labor Department reported Thursday.
The total number of Americans collecting unemployment benefits rose after declining last week for the first time in 10 weeks. About 1.87 million Americans were collecting jobless benefits for the week of July 6, around 20,000 more than the previous week. That’s the most since November of 2021.
Weekly unemployment claims are widely considered as representative of layoffs.
The COVID-19 pandemic has had a devastating impact on the economy, leading to a surge in jobless benefit applications as layoffs remain high in America. With businesses forced to shut down or reduce operations to comply with social distancing guidelines, millions of workers have found themselves out of work and struggling to make ends meet.
According to the U.S. Department of Labor, more than 40 million Americans have filed for unemployment benefits since the start of the pandemic in March. This unprecedented level of job loss has overwhelmed state unemployment systems, causing delays in processing claims and leaving many individuals without income for weeks or even months.
The increase in jobless benefit applications has put a strain on state budgets, with many struggling to meet the demand for assistance. In response, Congress passed the CARES Act in March, which provided additional funding for unemployment benefits and expanded eligibility to include gig workers, independent contractors, and self-employed individuals.
Despite these efforts, many Americans are still facing financial hardship as they wait for their benefits to be processed. The backlog of claims has led to frustration and anxiety among those who are struggling to pay bills and put food on the table.
As the pandemic continues to impact the economy, experts predict that layoffs will remain high in the coming months. Industries such as hospitality, retail, and entertainment have been hit particularly hard, with many businesses closing their doors permanently.
In order to address the ongoing crisis, policymakers must work together to provide additional support for unemployed workers. This could include extending the duration of benefits, increasing the amount of weekly payments, and implementing measures to expedite the processing of claims.
Employers also have a role to play in helping their workers navigate these challenging times. By offering flexible work arrangements, providing access to mental health resources, and communicating openly about the state of the business, companies can support their employees during this difficult period.
Ultimately, the increase in jobless benefit applications is a stark reminder of the economic toll of the pandemic. As we work towards recovery, it is essential that we prioritize the needs of those who have been most severely impacted by this crisis and ensure that they have the support they need to weather the storm.
