By Arlenys Tabare
Jun 27, 2024, 1:33 PM EDT
The Department of Labor published an employment report on Thursday highlighting that currently There is a high tendency for Americans to remain unemployed for longer which gives a clear sign that the labor market and the country’s economy in general are slowing down.
The data show that there was a sharp increase in the number of unemployed receiving benefitssuggesting that working conditions have tightened and Americans are having difficulty finding employment.
During the last week of June, people receiving unemployment benefits increased to 1,839 million. For the economist Ian Shepherdson “no indicator points to a large increase in applications, “But keep in mind that struggling companies generally prefer to reduce employment initially by cutting hiring, rather than laying off staff, and most hiring indicators also point to an imminent deterioration,” he said.
Until now, Unemployment claims remain close to levels prior to the Covid-19 pandemic and although they are volatile, they can be an indicator of layoff activities, it is also believed that this summer they will continue to increase, Shepherdson said, although if the forecast is accurate this “would give a further boost to the unemployment rate and leave the Federal Reserve seriously behind”said.
The labor market has suffered from the increases in interest rates in the last two years to control inflation, although it has remained at 5.50% since the end of 2023, reducing the inflation rate has become “a long way to go.” travel,” according to the Fed.
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