The number of new unemployment claims filed has just broken a new record.
When the coronavirus outbreak first erupted in March 2020, many businesses were forced to shut down temporarily in order to curb the spread. This has led to instant layoffs and an unemployment crisis like never before.
In April 2020, the national unemployment rate hit an all-time high and weekly unemployment claims were filed in the millions. These days, however, things have improved on the unemployment front. In November, the national unemployment rate fell to 4.2%, reaching its lowest level since March 2020.
Weekly jobless claims also fell. And recently, they hit an all-time high.
A positive sign for the economy
For the week ended December 4, new jobless claims stood at 184,000. This was the lowest number of new jobless claims since September 6, 1969, which saw 182,000 new claims. Economists had expected a low number of claims for the week, but their estimate stood at 211,000, well above the actual number of claims filed.
Today’s job market is full of job vacancies. A face-to-face return to school and widespread availability of the COVID-19 vaccine could make it easier for more people to re-enter the workforce. Earlier this year, when many schools were still isolated and vaccine supplies were limited, this was not the case.
In fact, many companies are so focused on hiring these days that they are raising wages and offering other incentives, like better health benefits and sign-in bonuses, in an effort to recruit staff. In addition, many offer perks such as flexible working hours, which particularly benefit parents and caregivers returning to work.
The impact on recovery aid
At this point, new jobless claims have been low for weeks. That, combined with the low unemployment rate in November, makes another round of stimulus checks in the bank accounts of affected Americans highly unlikely.
Of course, that’s not necessarily the news the public wants to hear. While it is encouraging to see the unemployment situation improve, the reality is that inflation is wreaking havoc on a lot of people’s finances. Getting a lifeline in the form of a stimulus check could help many households cope better with rising spending.
But while we’re not likely to see another round of stimulus in the near term, CNN reports that the increases could be generous in 2022. It could help more workers maintain their purchasing power in the face of the rising cost. of life. Additionally, if companies are increasingly looking to hire, they may start to throw away even Following incentives to workers, which could help replace a direct government salary.
It’s also worth noting that the strengthened child tax credit, which was initially only intended to apply in 2021, will likely be extended until tax year 2022 (since it has already passed a vote in bedroom). While this credit only benefits parents, it should still help many households stay afloat and consolidate their finances in the absence of a fourth stimulus check.