Thanksgiving Sees Drop in Jobless Claims, But Layoffs Continue
There’s more behind the latest dip in jobless claims than meets the eye. Three factors contribute to the reported numbers: Thanksgiving, seasonal hiring, and inconsistent state reporting. Over the Thanksgiving holiday, those that recently lost their jobs likely held off filing for unemployment until the following week. Seasonal holiday jobs are also inflating the hiring numbers, though these positions are temporary. And finally, Market Watch reports: a federal watch dog agency concluded “that continuing claims have been inflated by fraud, double counting, inconsistent state reporting and other problems.”
MarketScale Radio hosts Tyler Kern and Daniel Litwin take a closer look at the unemployment numbers. Litwin delivers his take on what jobs will look like once they recover; likely lower paying gig work funded by those that grew during the pandemic: Amazon, Uber, Lyft and others. Meanwhile, Main Street America struggles to recover while federal aid remains stagnant in Congress.
KEY POINTS:
- The unrestrained virus curbs business operations and slows hiring.
- Fearful employees stay home, making it harder for companies to operate as normal.
- The Thanksgiving holiday and seasonal hiring have slowed down unemployment numbers, but the landscape remains bleak.
