New claims for state jobless benefits bumped up to 351,000 in the most recent week, compared to 335,000 the week before and disappointing analysts’ expectations for just 320,000 new filings, labor department figures show.
Continuing claims rose to 2.85 million, passing economists’ expectation of 2.6 million.
The figures show the largest increases since July and signal a slowdown in the U.S. job market and, more broadly, in the nation’s economic recovery.
On 6 September, the weekly federal $300 unemployment insurance benefit ended, as did support programs for unemployed persons who had used up their state benefits.
TREND FORECAST: A crashing equity market will greatly increase the unemployment numbers. And what we said in “Unemployment Claims Ticking Up” (27 Jul 2021), has proven yet more accurate now.
Tens of thousands of businesses have permanently closed, vaporizing millions of jobs. Even under perfect economic conditions where there is steady growth, it would take many years to form and capitalize enough businesses to absorb all of those workers displaced by the COVID War.
In addition, the growth area for new jobs is in skilled work. Many of the millions who lost jobs in hospitality and leisure businesses lack the skills needed to change careers.
Although unemployment is decreasing, it will take much longer to settle down to the rate that marked the pre-2020 economy. Also, now that federal unemployment benefits and eviction bans have ended, and millions of people fear catching the Delta virus, the Biden Bounce has flattened out.
Unemployment is unlikely to reach the Fed’s dream of “full employment” (see related story) as long as unskilled workers lack work and skilled jobs lack qualified workers.