FOLLOW US

Due to reported surges in COVID-19 cases, multiple states have taken it upon themselves to issue new lockdowns and stay-at-home orders. This inevitably means that certain businesses are forced to close their doors, hence the continued endangerment of more jobs and businesses.

Over the summer, when communities across the nation backed off from shutdowns, unemployment claims reflected this via lower rates. However, as certain parts of America go back to locking down and issuing shelter-in-place edicts, more and more people are seeking jobless benefits.

On Thursday, the Labor Department confirmed that last week's unemployment claims skyrocketed from 137,000 to 853,000.

The startling increase in claims for unemployment benefits

Last week's 853,000 unemployment claims mark a steep hike from the 724,000 that economists previously predicted. Shutdowns, coupled with government-imposed curfews and orders for people not to leave home for "non-essential" reasons, are also linked to a rise in joblessness.

When businesses are earning less profits, they cannot afford to pay their employees as much money. Therefore, this often leads to layoffs, hence increases in claims for unemployment benefits. The capacity limits and social distancing restrictions in certain businesses also have documented, adverse impacts on profits.

The correlation between shutdowns and joblessness in America is something conservatives and critics of lockdowns consistently sound the alarm over.

Lowering weekly unemployment claims

In order to lower weekly unemployment claims, Americans will need to be able to get back to work. This means lockdowns and other measures that halt the flow of businesses will have to subside.

Despite reported surges in COVID-19 cases, the data is --- and continues to be --- consistent. When the government implements shutdowns and restrictions, businesses suffer, as do American workers. By contrast, when government lifts and lessens shutdowns and restrictions, businesses and workers are able to do their jobs; this subsequently drives down the demand for unemployment benefits.

The latest spike in unemployment claims arrives as Congress remains deadlocked over a new stimulus package offer from the White House. Republicans are all for this offer; meanwhile, congressional Democrats say the White House's proposal doesn't provide enough aid.

Conservatives have also sounded the alarm about a consistent reliance upon funding from the government.

----------------------------------------