A number of economic conditions can create problems for the nation’s employers, including a constricted labor market placing an increased importance on the hiring trends of businesses. As the economy struggles to return to strength, many employers may see their unemployment insurance costs start to rise as a higher amount of workers are terminated.

However, the contributing trends to these conditions have started to reverse as of late, and that could lead to a lower number of unemployment claims as well as fewer expenses for the country’s many companies.

In fact, the U.S. Department of Labor recently reported that the advance figure for seasonally adjusted initial claims ticked down in the middle of June. For the week ending June 14, the total was only 312,000, down 6,000 compared to the previous week. The four-week moving average also witnessed a decrease, down 3,750 from the previous average.

In addition, the DOL noted that the total number of people with federal unemployment benefits at the end of May was slightly below 2.5 million. While up on a weekly basis, it is also nearly 2 million people fewer than reported during the same time in 2013. The states with the highest insured unemployment rates were Alaska at 4.1 percent, New Jersey at 2.9 percent and Connecticut at 2.8 percent. California had the greatest uptick in initial claims in early June, with an increase of nearly 10,000 reported.

Fed involvement may still be needed
As the U.S. economy improves, it is certainly possible that the number of people without work will decline, as could the amount of jobless individuals with unemployment insurance benefits.

However, in order for the economy to continue its upward arc, involvement from the Federal Reserve may still be needed, according to The Associated Press. This comes on the heels of Fed Chair Janet Yellen’s news conference, where the central bank’s leader expressed a desire to continue existing policies, such as the one keeping short-term interest rates near historic lows. Even though the economy and the job market have made gains, continuing Fed involvement has the ability to please investors and economists, and ensure that conditions continue to trend positive for some time to come.

Juggling tax rates and difficult employees can become challenging at your company. Here at Corporate Cost Control, we understand these problems and are well-positioned to help. Our extensive background in cost control and human resources will allow you to better manage your unemployment expenses.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

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