With a long-term increase in unemployment claims comes higher expenses for employers. Thankfully, the current trend in the U.S. economy has been positive, but a slight reversal recently occurred, according to the Department of Labor.

For the week ending Aug. 9, the DOL reported that the advance figure for seasonally adjusted initial unemployment claims was 311,000, up 21,000 from the previous seven-day period. The four-week moving average climbed by 2,000 claims to 295,750. Furthermore, the insured unemployment rate for early August was 1.9 percent.

On a state-by-state basis, the highest insured unemployment rates were in New Jersey, Alaska and Connecticut, at 3.4 percent, 3.1 percent and 3.1 percent, respectively. The states that reported the most significant increases in initial claims in early August were South Carolina at 982, Pennsylvania at 853 and Michigan at 782. On a national level, more than 2.5 million people claimed benefits for the week ending July 26.

Number of youth workers on the rise
Having a large pool of skilled workers to choose from can be one reason why many employers don’t have to deal with high unemployment claims and costs. A better workforce lowers the likelihood of terminations, but those well-trained, motivated workers have to come from somewhere.

That is why a recent report from the U.S. Bureau of Labor Statistics is good news. The BLS noted that the youth employment rate – covering those between the ages of 16 and 24 – is on the way up. From April of this year to this past July, there were over 20 million youths employed in the U.S. Over the last 12 months, more than 51 percent of this age group held steady employment, a slight increase from the same time last year.

It is important to note that the time frame used in this report – April to July – is typically one where the youth employment rate sharply ticks up, in part due to many people getting out of school and looking for either full-time or summer jobs.

However, the overall trend of a rising workforce is positive. It is in an indication that employers may have an easier time finding skilled labor in the future, possibly contributing to lower unemployment rates.

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 insurance 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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