Back-to-back months of shutdowns have continued to have adverse impacts on the American people. The majority of 2020 proved beyond the shadow of a doubt that lockdowns engender job loss, hence the rise in unemployment claims.
For almost one year, Republicans, conservatives, and Libertarians warned about the long-term impacts of shutdowns. The right cautioned that shutting down the economy would cause countless Americans to struggle and engender continued harm to the job and labor markets.
New stats from the Department of Labor confirm that these warnings were worth listening to. According to Breitbart News, unemployment claims for the week of January 3 through January 9 jumped to 965,000.
The Latest Unemployment Numbers
Last month, the weekly unemployment numbers were in the range of the 800,000s. The swift jump to 965,000 last week starts off a new year on a not so great note for many people.
Amid the rise in jobless claims, questions about the causes behind such a huge leap are not uncommon. The reality, however, is that many areas across the nation are still shut down; businesses are still under tight restrictions and due to lack of demand in so many industries, countless Americans are suffering from layoffs.
Unemployment Insurance Weekly Claims
Initial claims were 965,000 for the week ending 1/9 (+181,000).
Insured unemployment was 5,271,000 for the week ending 1/2 (+199,000).https://t.co/ys7Eg5LKAW
— US Labor Department (@USDOL) January 14, 2021
Another factor is the election of Joe Biden and the outcome of the Senate runoffs in Georgia. Since the Biden administration is expected to increase taxes and regulations on businesses across the nation, this doesn’t incentivize new hirings, nor does it leave certain businesses the economic room to increase salaries.
Will Unemployment Claims Continue Rising?
Whether or not jobless claims keep going up will depend upon the economy; it will also depend upon whether or not states remain shut down or gradually commence re-engaging their workforces.
Earlier this week, New York Governor Andrew Cuomo came out against shutdowns in an interesting turn. The Democrat governor argued that lockdowns can’t continue because there won’t be any businesses or establishments left to reopen.
We’re in the teeth of this crisis, and we need to take immediate action to get the virus under control. That’s why tomorrow, I’ll be laying out my vaccination and economic rescue package to beat COVID-19 and build back better. https://t.co/YRzJ5nlkDm
— Joe Biden (@JoeBiden) January 14, 2021
Some people cited the timing of Cuomo’s revelation as interesting, seeing as President Trump leaves office in merely days; however, the reopening of businesses and the economy will be the most critical measures of driving down unemployment claims.
Are you shocked by the spike in claims for unemployment benefits? How do you think the incoming Biden administration will impact the economy and businesses throughout the nation. Let us know in the comments section below.