Applications for unemployment benefits remain below 400 thousand for second consecutive week

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  • June unemployment: The Biden government reported that unemployment claims in the second week of June were around 376,000 applications.
  • Several states in the country, all of them governed by Republicans, have announced the end of the additional subsidy of 300 dollars a week to the unemployed.
  • With the measure they seek that the unemployed see the need to join the labor market.

June unemployment: The number of applications for unemployment benefit fell last week to 376,000, compared to 385,000 the previous week, reported on Thursday the Department of Labor. The number of requests for the benefit fell below 400,000 for the second time since the Covid-19 pandemic pushed those requests to an unprecedented weekly figure of 6.8 million in March 2020.

The four-week filing average, a measure that compensates for weekly ups and downs, dropped to 402,500 from 428,000 the previous week, according to the Labor Department’s Bureau of Labor Statistics. Job creation unexpectedly came to a halt in the United States in April with 266,000 new jobs.

June unemployment
Twitter Department of Labor

June unemployment: the disappointment of April

Meanwhile, the unemployment rate rose to 6.1%, one tenth more than in March, according to BLS figures. The figure, well below the million jobs that analysts expected, broke with the downward trend registered in recent months as the economic recovery in the US consolidates.

The number of people receiving this benefit fell below four million for the first time in a year in the week ending March 14. These data were released two days after the White House rejected that the reinforcement of unemployment benefits is one of the main causes of the weak job creation registered in April in the United States.

June unemployment: White House targets pandemic

unemployment after end of aid
AP Photo

The White House pointed the cause to the persistence of the pandemic. The presidential spokeswoman, Jen Psaki, thus came up against criticism from the Republican opposition, which has affirmed that government aid makes citizens prefer not to work than to work, highlighted the Efe news agency.

Biden himself commented on the issue, pointing out that the “law is clear”, so that whoever “rejects” a “suitable” job will not be able to continue receiving unemployment benefits. Although Biden indicated that, for now, he does not see “evidence of this.”

June unemployment: Texas stopped paying $ 300

unemployment after end of aid
Twitter

The unemployed in the state of Texas will no longer receive federal unemployment compensation related to the COVID-19 pandemic as of June 26, Governor Greg Abbott announced on Monday.

The Republican’s decision includes the weekly $ 300 weekly supplement for unemployment from the federal compensation program and is due, Abbot said, to the fact that there are now nearly 60% more jobs available in Texas than in February 2020, a month before the pandemic hit the country.

June unemployment: Republicans insist aid discourages job search

unemployment after end of aid, unemployment check
Photo: Shutterstock

The announcement comes after Republicans last week criticized the administration of President Joe Biden, believing that these grants discourage job search and result in more jobs than jobseekers.

The governor said in a statement that, according to the Texas Workforce Commission (TWC), the number of job openings in Texas is “almost identical” to the number of Texans receiving unemployment benefits.

June unemployment: Republicans reject that it is due to low wages

unemployment after end of aid
Twitter

Abbot rejected that this situation is due to low pay, as the unions allege and has led companies such as McDonalds in recent days to raise wages to try to reinforce their workforce, and said that the current job vacancies are “jobs well paid ”.

In that sense, he indicated, citing data from the TWC, almost 45% of the jobs published offer wages above $ 15.50 per hour and about 76% pay more than 11.50 per hour.

June unemployment: pressure from business groups

AP Photo

Dozens of business groups had already asked the governor to cancel the additional $ 300 in federal unemployment pay, in a move that comes after a dozen states, all of them led by Republicans, have already announced their plans to do the same. In the next weeks.

Abbott argued that in this opening stage of the state economy, after the months-long hiatus caused by the pandemic, it is necessary to “help unemployed Texans connect” with the more than one million vacant positions and also combat “high level of fraudulent unemployment claims ”.

Unemployment drops for the third week

Photo: AP

As reported by the Bureau of Labor Statistics (BLS) last week, weekly claims for unemployment benefits in the United States fell below 500,000 for the first time since the pandemic began.

This data, added to the weak data for job creation in April, when only 260,000 jobs were created compared to the million estimated by analysts, unleashed Republican criticism of the third fiscal stimulus package, worth 1.9 trillion dollars. .

Unemployment after end of aid: the third check

Image taken from AP

This stimulus included direct cash transfers of up to $ 1,400 to millions of citizens and a strengthening and expansion of unemployment benefits, as well as aid to small and medium-sized enterprises.

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White House sees fit for companies to raise wages to attract workers

Arizona helps unemployment coronavirus Covid-19
Shutterstock

The White House economic adviser Cecilia Rouse considered this Friday that it is “appropriate” for companies to pay more to attract workers, especially in essential positions during the pandemic.

In a press conference at the presidential mansion, Rouse pointed out that in market economies it is normal for employers to try to attract workers through wages, especially when the pandemic has not yet been overcome and many essential positions are at risk. .

More jobs than job seekers

Photo: Getty

“So if employers have to pay a little more to compensate for those employees taking a risk, I think it’s appropriate in a market economy,” said Joe Biden, president of the Council of Economic Advisers to the Government of President Joe Biden.

Despite the progress of the economy in macroeconomic terms, the US is showing an unusual phenomenon after the crisis caused by the pandemic: more jobs than jobseekers.

Weak job creation data

unemployment after check, Money unemployment coronavirus Donad Trump
AP

The weak data for job creation in April, when only 260,000 jobs were created compared to the million estimated by analysts, has generated concern about the situation of the labor market in the world’s leading economy.

Rouse added that 58% of U.S. adults have received a dose of the COVID-19 vaccine, but only a quarter of Americans ages 18-29 and one-third of those ages 30-29. 39 years are fully immunized, which affects the labor market.

The post Applications for unemployment benefits remain below 400 thousand for the second week appeared first on Hispanic World.

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