An Additional 1.5 Million People Applied For Unemployment
There was good news in job markets as the economy begins to reopen.
The job market continues to struggle as an additional 1.5 million people applied for jobless benefits last week. This number was 355,000 less than the prior week. "Continued claims fell by 339,000 to 20.9 million, a sign that more people are returning to work as the economy reopens after pandemic lockdowns", NPR reports. Over 44 million first-time claims were filed in the last 12 weeks.
"The Federal Reserve is projecting that the unemployment rate will be more than 9% by year end, falling to 6.5% by the end of 2021." While that is lower than last month’s 13.3% rate, it is drastically higher than the 3.5% unemployment reported earlier this year. "Employers added 2.5 million jobs in May, but they slashed 20.7 million just a month earlier".
Fed Chairman Jerome Powell said "The May employment report, of course, was a welcome surprise… We hope we get many more like it. But I think we have to be honest. It’s a long road."