The road to full economic recovery is one that the nation is still on. Despite certain progress and hopeful indicators, America is still not fully out of the woods.
During the height of lockdowns, many businesses permanently shut their doors. This means that some jobs are lost for good and people who worked these jobs must find employment elsewhere.
There is an interesting dichotomy at work as the economy recovers, though. Some Americans are finding it challenging to get work again; meanwhile, some businesses report labor shortages as they seek qualified workers to fill available positions. Labor shortages are currently being attributed to government handouts that pay people to sit home, rather than encouraging them to get back into the workforce.
According to Breitbart News, however, the latest unemployment numbers dropped to 547K.
What to Know About the Latest Drop in Unemployment Claims
The nature of jobless claims can be unpredictable, as many Americans are learning in 2021. Some weeks, they reach hopeful new lows; during other weeks, unemployment claims surge well beyond the expectations of economists.
For the week of April 11 through the 17th, the jobless claims fell to 547K. This number is a milestone and the lowest since the emergence of COVID-19 last year. The latest drop in unemployment claims is largely attributed to states loosening their restrictions on businesses and the economy.
Unemployment Insurance Weekly Claims
Initial claims were 547,000 for the week ending 4/17 (-39,000).
Insured unemployment was 3,674,000 for the week ending 4/10 (-34,000).https://t.co/ys7Eg5LKAW
— US Labor Department (@USDOL) April 22, 2021
Thus far, 43 of 50 states are open for business for the most part. The return of economic activity allows for consumers, workers, and business owners to engage in the labor market. With this new surge of economic engagement comes a reduced need for jobless benefits.
Keeping the Economy on the Right Track
As the nation continues to get back to normal, it is deeply imperative for the economy to stay on the right track.
This means being mindful of reported labor shortages and working to crack down on them. For instance, Republicans and fiscal conservatives have warned that there’s a fine balance between helping out-of-work Americans vs. paying people to stay home.
— US Labor Department (@USDOL) April 21, 2021
As previously mentioned, some businesses are reporting labor shortages. This is bad news and it means that certain government programs are beginning to have the opposite impacts than intended. As businesses reopen, they should not be struggling to find qualified staff.
Getting people back to work means helping businesses thrive. When businesses thrive, so do communities. When communities thrive, the economy follows suit and America is better off for it.
What do you think about the latest unemployment claims? Let us know in the comments section below.