Economists are reporting that economic growth is slowing more than they thought. Unemployment claims have jumped significantly bringing down the Dow Jones Industrial Average to 1.1 percent. The Labor Department stated job aid claims rose 10 percent at week’s end on April 30–bringing the total to 470,000. Recent jobs readings have been disappointing and payrolls info are weak. Yelena Shulyatyeva, an economist, said, “We are expecting to see some slowing in payrolls in April. It looks like in the first half of the year we are going to see some moderation of growth due to high inflation that is taking a toll on consumers.”
Economists expect the unemployment rate to stay at 8.8 percent. The rate dropped a point since November, but remains too high for the Federal Reserve to make any significant moves yet. They aren’t in a hurry to use the stimulus money for the economy at this time. Banks have raised interest rates and gas and food prices continue to climb. Consumers continue to look for employment to be able to pay these high costs—with little result. Many sign up for unemployment and other benefits, such as food stamps to be able to survive daily life and pay necessary bills.
Job creation slowdown was expected due to many first time unemployment claim benefits being distributed recently. Employment in service and manufacturing sectors have decreased and weakened. Companies have also been slow to hire, while others aren’t hiring at all. Today’s report on the employment is expected to show not much increase in hiring, no wage increases, and the work week hours remaining the same.