Washington, D.C. (Washington Insider Magazine) Last week, there was a drop in unemployment benefits. The number dropped to 406,000 which is a new low since the pandemic began. In addition, the job market seems to be strengthening as the pandemic wanes and the economy is reopening.
The Labor Department has reported that applications for unemployment fell from 444,000 tp 38,000 last week. “The number of weekly applications for jobless aid has fallen by more than half since January.”
A quick rebound in economic growth has been seen by the decline in applications. “More Americans are venturing out to shop, travel, dine out, and congregate at entertainment venues.” Because of the increase in spending, companies have needed more workers. This explains why more jobs are now being advertised.
However, there are many businesses that are complaining that “they can’t find enough applicants for all those open jobs.” This seems strange because the unemployment rate is currently at 6.1 percent. Before the pandemic began last March, the rate of unemployment was 3.5 percent.
There are various factors to try to understand why there are more people unemployed now, even though the need for jobs has gone up. Since March, people who are unemployed are receiving an additional $300-a-week payment, which is additional money on top of their state unemployment check. The federal benefit “was included in President Joe Biden’s $1.9 trillion rescue package.”
Thus, some people have been discouraged to return to their jobs as they are earning more with the federal and state jobless aid than they would earn from their job.
Other people fear getting Covid-19 if they apply for and get a job in a restaurant, hotel, or some other service industry.
Some of the Republican governors are going to stop the payment of supplemental $300-a-week federal jobless payment beginning in June. There are twenty-four states who have decided to do this, including Texas, Georgia, Florida, and Arizona.