The Biden administration’s economic strategy, known as “Bidenomics,” is under fire as unemployment numbers keep climbing.
Last week, new jobless claims shot up by 14,000, hitting 249,000 – the highest in nearly a year.
This jump caught economists off guard, easily surpassing their predictions.
More Americans are staying on unemployment benefits too.
The number of people getting benefits after their first week rose by 33,000, reaching 1.88 million.
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We haven’t seen numbers this high since the tough days of 2021 when the pandemic was still shaking up the job market.
These figures suggest that people who lose their jobs are having a harder time finding new ones.
Both initial and continuing unemployment claims are now notably above pre-pandemic levels.
The soft landing is morphing into quicksand. pic.twitter.com/srXDsWwila
— Peter Berezin (@PeterBerezinBCA) August 1, 2024
Michigan saw the biggest increase in new claims, while Texas also had a significant jump.
The Texas increase might be temporary, though, due to a recent hurricane.
The Federal Reserve seems to be taking a cautious stance.
They’ve said the risks of a weaker job market are about equal to the risks of rising inflation.
But this balanced view might not capture the full picture of what’s happening on the ground.
"I think if you're at the Fed, they're not really concerned about the recent uptick in unemployment. They think it's what's called a virtuous rise," says RSM US Chief Economist @joebrusuelas. "But you're going to see hiring cool." pic.twitter.com/hNJwAOFwgw
— Squawk Box (@SquawkCNBC) July 30, 2024
Critics argue that Bidenomics is causing more harm than good. They say the policies have led to high inflation, which in turn is making businesses think twice about hiring or keeping staff.
As one market analyst put it, “We’re seeing numbers that look like 2021 all over again. But this time, it’s not just about recovering from COVID – it’s about dealing with the fallout from current economic policies.”
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As unemployment claims continue to rise, the pressure is mounting on whoever is actually running the executive branch to prove that its economic approach can deliver results.
