While there have been multiple signs that the labor market is weakening, the number of Americans who filed for unemployment benefits has increased again. Over 260,000 workers filed for new unemployment benefits throughout the last week of July.
In earlier months this year, the labor market had been one of the few bright spots in the economy. The unemployment rate remained steady at 3.6% for the fourth consecutive month, reaching a historic low. However, with unemployment claims rising to the highest level since November 2021, businesses such as Apple, Walmart, and Microsoft, are announcing hiring freezes and/or layoffs.
The U.S. government announced that businesses had posted fewer positions amid concerns that the economy was weakening. In fact, for every unemployed individual, there are currently almost two job vacancies.
Unemployment Claims Management
The unemployment claims process can be cumbersome between changing compliance regulations and increasing costs for small business owners. Your company’s bottom line can be severely affected by rising unemployment insurance rates due to an increase in unemployment claims. When you partner with GMS, you no longer need to spend time trying to protect your business from unemployment claims and taxes. Contact us today.