Monday, June 23, 2025

Latest

US Initial Jobless Claims Unexpectedly Exceed Forecasts

US initial jobless claims surprisingly jumped by more than expected last week, despite optimistic sentiment that the country’s labour market is slated for a strong comeback heading into the fall season.

According to the Department of Labour, first-time applications for unemployment benefits jumped by 51,000 to 419,000 last week, marking the highest total since late March. Economists surveyed by Bloomberg forecast a total of 350,000 applications. The latest figures sent government bond yields lower, while stock market futures slumped from their morning highs.

On the other hand, continuing claims, which are one week behind the headline figures, fell by 29,000 to 3.24 million for the week ending on July 10, marking the lowest total since March 14, 2020. However, when analyzed at the state level, the number of continuing claims for state unemployment benefits deviated significantly across states that phased out their benefit programs ahead of September’s statutory expiration.

In short, Americans have been returning to work in states where government dole is no longer paying them to sit on the couch, while initial and continuing claims continue to rise across states that are clinging onto the September deadline.

With that, lets consider the following scenario: once the federal government’s generous unemployment benefits completely run dry, and millions of Americans are forced to re-enter the labour market, what will become of theirs, and everyone else’s wages, as companies’ gross profit continues to be eroded away by skyrocketing inflation? Stagflation, anyone?

Information for this briefing was found via the DOL and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Tudor Gold x American Creek: Consolidating A Massive Gold Project

Aura Minerals: The Era Dorada Underground PEA

Gold Is Now Smart Money’s End Game | Doug Casey

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

2020 Comes to an End With Nearly 20 Million Americans Still Collecting Unemployment Benefits

With the end of 2020 closing in, the number of initial jobless claims in the...

Saturday, January 2, 2021, 03:47:00 PM

US Initial Jobless Claims Near 55 Million as Economic Recovery Becomes Stagnant

As the US economy struggles to make headway in its recovery, the number of unemployed...

Thursday, August 6, 2020, 12:25:12 PM

US Jobless Claims Fall Below 400K for First Time Since Beginning of Pandemic

For the first time since the beginning of the pandemic, initial jobless claims have fallen...

Friday, June 4, 2021, 03:36:00 PM

US Initial Jobless Claims on the Rise Again as Soaring Covid Cases Crush Labour Market

The US labour market recovery appears to be stalling amid a surge in coronavirus cases...

Wednesday, November 25, 2020, 02:30:00 PM

US Posts Another 4M Jobless Claims; Over 26M in Last 5 Weeks

This morning the Department of Labor announced the initial jobless claimes for the week ended...

Thursday, April 23, 2020, 10:23:46 AM