Jan. 12, 2022
By Sebastian Liuba
Staff Writer
In December, weekly jobless claims fell to 184,000, which is the lowest they have been in 52 years.
Economics teacher Mr. Newman said the reason jobless claims are so low is because of the Covid-19.
“Many people who were unemployed at the start of the pandemic are now not eligible for benefits anymore,” Newman said.
While this unemployment drop may seem good, Newman said there are still people in need of work.
“With the continued issues of the pandemic, this is very tough,” Newman said. “People are still struggling to find jobs within our current pandemic world where the rates of positive tests will likely surge after the holiday season.”
Newman said the food service industry is an interesting segment of the economy to examine because it presents a paradox.
“On one side, there are places that are doing great business but cannot find workers…. You [also] have places that are not hiring many people because of fears of another shutdown, slowdown of in-person customers, a termination of indoor dining, etcetera,” Newman said.
He said jobless rates are not the only factor to consider when examining quality of life and the economy.
“Sometimes, it’s not about the jobless rate but more about people earning a living wage. For example, some people might hold two or more jobs, especially in times like this, to cover what they used to make with one job,” Newman said. “Technically that person is employed twice or more, yet [that person] makes what they used to make with one job.”
U.S. History and Advanced Placement Government & Politics teacher Mr. Clifford said a drop in jobless claims could indicate that there are more jobs available or that people are choosing not to enter the labor force.
He said the sectors most impacted by the current labor shortages are hospitality, food services, wholesale trade and education.
“Employees are leaving essential jobs at record rates,” Clifford said.
According to data released by the analytics firm Visier, one in four people quit their job last year. CNBC reported that a record-breaking 4.3 million people quit their jobs in August, following several months of sky-high turnover throughout the spring and summer of 2021.
Clifford said the low jobless rates indicate economic recovery, but it is important to understand that not all segments of the population are equally represented in the statistic.
“Economic recovery is stalling for women and Black workers. Experts believe that the unemployment rate for Black workers has stalled due to the fact that there are more Black workers coming back into the labor force in search of jobs,” Clifford said.
“So many jobs are currently experiencing worker shortages, including restaurants. This has forced many restaurants to either close down or limit their hours.”
According to an October jobs report, unemployment rates for minorities and women have been relatively constant.
Like Newman and Clifford, English teacher Ms. DiMaggio said restaurants were hit especially hard by the pandemic.
“So many jobs are currently experiencing worker shortages, including restaurants. This has forced many restaurants to either close down or limit their hours,” DiMaggio said.
She said unemployment claims are low because people are now returning to work.
“Covid affected jobless claims during the start of the pandemic because so many businesses were not able to remain open, leaving many without income,” DiMaggio said. “People have been out of work due to the Covid-19 pandemic and need work after many have not had work for so long.”
