Jobless claims had just made a decades-long low of 194,000 applications, signaling a fast-paced economic recovery taking place. However this week, the number of claims rose by 28,000 applications making it reach the mark of 222,000 as reported by the Labor Department.
The number had hit the roof this year in January of 2021, when over 900,000 applications were received, hinting at tremendous lay-offs which have now drastically come under control.
On September 6th the federal government did away with adding to the state unemployment insurance programs, to which it would earlier pay $300 a week. The benefits during the period were also extended to gig workers or any person who had been unemployed for over 6 months in the pandemic. The number reached its peak when the virus was new, and caused a storm in June 2020, when nearly 33 million Americans were seeking aid.
Luckily the businesses of all scales were quick to adopt new technologies and mediums to make the same work more convenient, after the spring. A lot many businesses due to the virus were forced to take drastic measures at first, such as closing down physical spaces, changing working hours, rethink interactions, all while still trying to be profitable.
On the contrary, this year has seen a role reversal where companies are now hunting for manpower, and are afraid to let their present staff go. The workers are now becoming more aware of opportunities and what they seek at a workplace. Job openings hit a new high of 10.4 million in September. Unseen in decades, the workers’ dominance has led to a new wave in the job market.
Rubeela Farooqi, chief U.S. economist at High-Frequency Economics. Said, “Workers are in high demand and businesses are reluctant to reduce their workforce amid persisting shortages,”
She also shared that, “Our base case was that supply (of workers) would gradually return as the cushion from savings diminished. However, renewed health concerns are a downside risk that may prevent people from returning to the workforce over coming months.’