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Unemployment claims rose last week as states start ending supplemental programs early

Despite the job market beginning to balance with the economy reopening, Americans looking for unemployment benefits rose to 419,000 last week.

This is the biggest rise in two months, with 368,000 claims filed the previous week.

The number of first-time applications has been falling steadily from the 900,000 it reached in January.

DiSanto Propane (Billboard)

Americans are boosting the economy now that they can go out to eat, travel and shop again which has businesses working to hire more employees to keep up with demand.

The issue is, businesses are struggling to find workers willing to work for the wages the businesses are willing to pay.

22 states have already ended the $300 weekly federal unemployment benefit amid complaints that businesses can’t find workers. That aid was able to be obtained on top of any state aid offered for unemployment.

20 states have ended participation in one program that provides benefits for self employed individuals and another program that serves individuals that have been out of work for over six months.

Indiana and Maryland tried to end programs that provided supplemental aid and ended up being blocked by court rulings.

The programs will nationally expire in September.

DiSanto Propane (Billboard)

The boost in the economy began right around when Americans had their stimulus checks.

Retail sales have risen 20% above what they were during the pandemic.

As states end the additional benefits for unemployment early, there is a steady decline in unemployment overall.

When states first started ending programming in May, the number of unemployment recipients was around 14.8 million, and most recently was 12.6 million.

Data also suggests businesses are offering higher wages as companies become desperate to hire.

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