With tough market conditions, more and more Americans are filing for unemployment. Applications for unemployment benefits increased by 6,000 last week, leading to a total of 223,000 while analysts were expecting only 219,000 at this point this year. This increase is likely due to more and more individuals are laid off. As of January 11, the number of Americans receiving unemployment benefits is about 1.9 million, which is the highest it has been since November 2021.
As more and more Americans file for unemployment benefits, it may be the case that those on unemployment benefits are struggling to find jobs at all. Some blame this on the market, claiming that there is not enough demand for solid jobs. Others, however, blame the unemployed themselves, claiming they could find solid jobs if they put the effort in or lowered their salary expectations. Which is true?
Is Unemployment in America in a Bad Spot?
2024 certainly had its fair share of market weaknesses, but analysts today report that there are still plenty of available jobs and layoffs overall are quite low. The final jobs report of 2024 highlights the fact that both the economy was growing, and that there were many companies hiring. This was the case even though there were high interest rates. Despite this, many analysts believe that the American economy is entering a “post-COVID period of steady growth”, with high interest rates, low unemployment, with slightly high inflation.
According to historical data, layoffs are reportedly in a healthy place. This may come as a surprise to many, as companies such as Meta, GM, Boeing, Starbucks, and Stellantis have all announced layoffs. While these layoffs certainly are in the public eye, in the grand scheme of the American economy, it seems like these are not too out of the ordinary. While many Americans were concerned about the economy in 2024, many are feeling more optimistic with President Trump’s recent winning of the Oval Office. Trump announced a major joint venture of AI companies called Stargate, which he believes will lead to the creation of 100,000 AI related jobs.
What do you think about the state of unemployment in the United States? Is it too hard to find jobs at the moment, or can it be done with a reasonable amount of effort? What do you think President Trump will do to the economy in his second term? Let us know in the comments.
Featured Image Credit: Ron Lach; Pexels: Thank You!
