US Jobless Claims See a Surprise Increase to 412,000
According to a report released by the Labor Department on Thursday, 412,000 Americans claimed first-time jobless benefits over the last week, a 37,000 increase from the previous week, which had been a pandemic low.
Analysts were surprised at the increase as applications for unemployment aid had been dropping for six weeks straight and the job market has been showing signs of strengthening. Economists were expecting the number to be around 360,000 and that the country would maintain the downward trend in new applications.
Nearly all of the increase came from two states, California and Pennsylvania.
Despite some of the positive trends, some businesses have been having difficulty finding applicants for open job positions, particularly, entry-level positions.
Economists are also concerned that the sudden increase in consumer demand will continue to affect inflation (the US is experiencing the highest inflation since 2008), a concern that Wall Street also shares.
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