Weekly Job Losses “Unexpectedly” Spike For 2nd Straight Week
This is now the second straight week I’ve shown you similar news on a Thursday evening.
Three weeks ago, weekly jobless claims hit a pandemic low of 658,000.
Last week they “unexpectedly” rose to 719,000.
And this week they’re “unexpectedly” up again to 744,000.
Why did I put unexpectedly in quotes above?
Because I’ve told you for weeks why this isn’t unexpected to me.
Debt levels across the board are at a record $281 trillion worldwide.
This adds enormous costs to businesses alone.
Then you add into this that interest rates are up 1.15% since the pandemic low at 0.55%.
Which increases the costs of debt further and increases a company’s expenses even more.
Then on top of this you have inflation rising as well.
This further increases costs for companies.
I’ve talked about how these higher costs could and likely would lead to a slowdown in hiring in depth in our morning and evening articles for weeks now.
This is why I’m not surprised weekly jobless claims are rising.
All three add enormous costs to companies… And most companies are already struggling after dealing with the pandemic for the last year.
Yes, the jobless claims are way down from the 7 million weekly jobs lost during the height of the initial Covid panic last April.
This is now 3 straight weeks of jobless claims increasing.
At this point it’s not a one-week aberration anymore… It’s a trend. And it’s not a good one.
The economic recovery is already moving at a slow pace… And we have no chance of getting to a strong economic recovery until the unemployment issue is fixed.
And now you throw in Covid cases and deaths increasing again like I told you about yesterday…
This variant or “mutant” strain was first spotted in England. And has now spread to almost 100 countries worldwide.
Why is this such a big worry?
- Its more contagious than the original variants from last Fall.
- And its 64% more deadly according to research done by the British Medical Journal.
This is what viruses do… They mutate constantly to try to survive and thrive.
The variant is a big reason after two months of rapid declines in new cases and deaths, these things are rising again.
France is already back on lockdown again.
So is Italy.
So is Germany and other parts of Europe.
And India just recorded a record number of new daily cases on April 5th at more than 103,000.
If this new strain continues to explode will we see lockdowns again throughout the world and here in the United States?
Will this lead to mass firings again as hiring picks up in the US?
Will this slow the economic recovery even more?
At this point, no on one Earth knows the answers to these questions.
But this is exactly what I’ve been warning you to remain cautious in the last few weeks.
As I said yesterday,
Be cautiously optimistic and hopeful… But also make sure you keep protecting your retirement portfolio.
This was the case three weeks ago when we hit a pandemic low for jobless claims… And it’s still the case today after a trend of increasing job losses is now back.
I’ll continue to help you figure out how to best protect your retirement from inflation and all the other risks I see out there in our morning email sends.
Your guide to financial freedom and achieving your retirement goals.
Always in your service,
Publisher Stock Market Daily
P.S. Check out our Chart of The Day below to see where the Dow Jones Industrial Average (DJIA) finished today.
Chart Of The Day
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