The amount of Americans filing fresh unemployment claims went up to 362,000 in the previous week as the economy slowly recovered from the covid pandemic.
The labor statistics released Thursday represents a boost in the amount of new jobless claims compared to the week that ended September 18, when 351,000 new unemployment claims were reported. Jobless claims were anticipated to decline down to 335,000, The WSJ reported.
Last week was the second consecutive week during which jobless claims went up after economists expected a decline.
“There is still an incredible amount of job postings and hiring is strong, so businesses are keeping their current workers as closely as they can,” Chief Economist Joel Naroff said to the WSJ.
Previously this month, the United States reported 310,000 claims for the week that ended Sept. 6, the lowest amount of weekly unemployment claims since the pandemic started. Since then, claims have steadily gone up.
About 5 million Americans are still getting unemployment benefits around the country, Thursday’s report revealed.
Democrats, meanwhile, have worked uphill to unify their party to support the $3.5 trillion budget program and trillion-dollar infrastructure bill. The budget reconciliation bill, which only Dems have supported, would lower the U.S. GDP over 10 years and increase the federal debt, according to an estimate done by the Penn Wharton Model.
Congress has also raced to pass a funding bill to avoid a shutdown on top of a debt ceiling increase, which the GOP has promised to oppose. Treasury Secretary Janet Yellen warned about the devastating consequences of the debt limit not being increased and said the country would default in mid-October if Congress did not act.
“Failure to act quickly could also end in great disruptions to financial markets, as more uncertainty can exacerbate volatility and lower investor confidence,” Yellen said in a letter to lawmakers in both parties this week.
U.S. GDP would go down 4%, 6 million jobs would be lost and the unemployment rate would increase to 9% if the debt ceiling is not raised, a recent Moody’s report said.
Author: Steven Sinclaire
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