In a turn of events that bring up yet another surprise to labor market analysts, the initial filings for unemployment insurance saw yet another increase for the week of July 3rd.
As reported by CNBC:
First-time jobless claims totaled 373,000 for the week ended July 3, compared with the 350,000 Dow Jones estimate. The previous week’s level was revised up by 7,000 from 364,000 to 371,000.
The Department of Labor, in another set of weekly reports, stated that their data shows similar results. For example, over 412,000 individuals filed the initial claims forms for the week ending on June 12th, which is a figure that shot past the analyst’s previous expectations by roughly 15%.
CNBC continues on to say:
The level of continuing claims, the measure of ongoing benefits, decreased to 3.34 million, down 145,000 from the previous week’s revised level. Despite the uptick in first-time applicants, the decreased number of continuing claims represented the lowest level for insured unemployment since March 2020. The four-week moving average for continuing claims, which smooths weekly volatility, fell by 44,500 to 3.44 million, also the lowest since March 2020.
In the weeks prior to the COVID-19 pandemic and the lockdown-induced recession that followed, the initial claims were just slightly over 200,000 per week. Continuing claims were between 1.5 and 2 million.
As pointed out by several reports, the Democrat-run states are currently seeing extremely lackluster labor market recoveries in comparison to Republican-run states. For example, a report from the personal finance company WalletHub discovered that nine of the top ten states for employment rebounds are currently led by Republican governors, while on the complete flip side, ALL of the bottom 10 states are run by Democrat governors.
For the most part, the Republican governors have opted their respective states out of the federal government’s $300-per-week enhanced unemployment insurance on a voluntary basis. As of yet, there has only been one of their Democratic governor counterparts to have announced their intention to stop the additional payments before they expire automatically on the 6th of September of this year, and that one governor is John Bel Edwards of Louisiana.
In yet another study put out from the Committee to Unleash Prosperity, it was revealed that between federal and state programs, a family with two parents that will receive the unemployment benefits can receive “equivalent to $100,000 a year in salary” in many of the blue states.
An analysis sent out from the Hoover Institution’s fellow Daniel Heil and John F. Cogan issued a prediction that Uncle Joe’s American Families Plan would shove over 21 million people into federal welfare programs. As part of the $1.8 trillion omnibus package, over 80% of single-parent households would enter the entitlement rolls as the federal deficit see its expansion by over $1 trillion over the course of the next decade.