Staff Reports
The Biden administration received more disappointing news on Thursday as the Department of Labor released its weekly report on unemployment claims. The report showed that 231,000 people filed for unemployment benefits, an increase from the previous week and higher than what was expected. This surge in jobless claims is the largest since August, leading some to speculate that it may indicate a shift in the labor market.
Weekly Jobless Claims Unexpectedly Shoot Up to ‘Worrisome’ Level via @gatewaypundit https://t.co/kS4s6focz5
— The Gateway Pundit (@gatewaypundit) May 9, 2024
Continuing jobless claims also rose by 17,000 from the previous week, and the four-week moving average of claims showed a week-to-week increase as well. While the unemployment rate saw a slight increase from 3.8 to 3.9 percent, it has remained below 4 percent for over two years, which is the longest streak since the 1960s.
The disappointing report also revealed that nonfarm payrolls only increased by 175,000 in April, lower than the anticipated 240,000. This marks the smallest month-to-month rise since October, suggesting a potential slowdown in job growth.
The possibility of additional interest rate cuts by the Federal Reserve has been raised due to the slowing labor market. Some economists predict the first rate cut may happen in July, while others believe it is more likely to occur in September.
While the stock market initially dipped after the release of the report, it quickly rebounded, with the Dow Jones Industrial Average up nearly half a point by late morning. The report on unemployment claims indicated a potential change in the otherwise robust labor market, causing concern among some economists about the future of the U.S. economy.
This news comes as a blow to the Biden administration, which has been touting its economic policies. The effects of Bidenomics on the labor market remain a topic of discussion, as some experts express worry over the potential impact of these policies.
