23.10.2021

US jobless claims plummeted late May

US unemployment claims fell at the end of May, suggesting that the recent increase in layoffs is mainly due to seasonal factors, the effects of which are already disappearing.

Initial applications for unemployment benefits fell by 13 thousand to 221 thousand for the week ending May 26. Economists surveyed by MarketWatch predicted bids would drop to 225,000.

Nevertheless, a more stable average monthly rate increased by 2.5 thousand to 222.25 thousand.

According to the government, the number of people already receiving unemployment benefits fell by 16 thousand to 1.73 million.

Part of the fall in applications last week may reflect the fact that many were expecting the end of the celebration of Memorial Day to apply for unemployment benefits.

However, even if this is so, the layoff rate remains at a minimum for almost 50 years, and there is no indication that this trend will change.

Applications for unemployment benefits are likely to remain at about 220 thousand or so in the foreseeable future.

The US labor market continues to grow. For the first time, unemployment has fallen below 4% since 2000, vacancies are opening at a record pace, and companies use all kinds of tactics to recruit and retain employees.

The low number of layoffs is due to difficulties in finding qualified personnel.

The government is expected on June 1 to report that 200,000 new jobs were created in the US in May.

Oreshkin: US violates WTO and world trade rules

Russian Minister of Economic Development Maxim Oreshkin called on the World Trade Organization to discuss the concept of national security, taking into account unilateral protectionist measures by the United States.

US authorities violate the rules of world trade and damage the global economy. This was stated by the head of the Ministry of Economic Development, speaking at the WTO ministerial meeting in Paris. Maxim Oreshkin admitted that thereby US actions exacerbate the slowdown in economic growth and lead to an exacerbation of crisis phenomena.

“Clouds are already on the horizon: developed countries have reached the limits of post-crisis recovery. This causes an increase in interest rates, which in turn leads to problems of developing countries with a large current account deficit. In these difficult conditions, we see a massive violation of the rules of world trade.

We are witnessing how the United States shoots itself in the foot, while damaging the entire global economy. History shows, unfortunately, that all the positive aspects in the regulation of international trade occur only after something really bad happens to the global economy.
Perhaps we are already sitting on the train with the next stop at the Global Crisis station.

We encourage members to start a discussion on national security in the WTO agreement. We do not agree with how our American colleagues use this concept; this contradicts the initial understanding.

By introducing trade barriers, countries tried to protect their economies, but all this led only to long-term damage to all.
We must not allow the fragmentation of the system, the work must be transformed into a multilateral format. ”

The violation of the rules of world trade by the United States on May 31 was also noted in the leadership of the European Union. Following the announcement of the introduction of steel and aluminum duties by the Trump administration, European Commission President Jean-Claude Juncker and European Commissioner for Trade Cecilia Malström noted that the US authorities are taking “unjustified actions” that are “contrary to international rules.”

The European Commission has responded to the introduction of US duties

EU officials said Thursday was a “bad day for world trade” following an official announcement by the Trump administration about the application of trade restrictions.

In a statement, the US authorities announced the introduction of duties of 25% on aluminum and 10% on steel in relation to the EU, Canada and Mexico. The new tariffs take effect on the night of Friday, June 1.

The European Commission called the Trump administration’s decision “unjustified” and “violating international rules.” The leadership of the EC also noted that in the near future due to the actions of the United States will be initiated proceedings in the WTO.

EC President Jean-Claude Juncker, in particular, said: “I am concerned about this decision. The EU believes that unilateral US tariffs are unjustified and do not comply with the rules of the World Trade Organization. This is pure protectionism. ”

According to Cecilia Malström, the European Commissioner for Trade, over the past few months, “the US has used the threat of trade restrictions as a lever of pressure.” Malstrom said that “today is a bad day for world trade,” adding that “US actions are clearly contrary to internationally agreed rules.”

As noted, the EU will seek to “rebalance” this situation within the WTO. In particular, the EU will impose import duties on a certain group of goods from the United States.

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