Due to automobile plants temporarily shutting down in Michigan, Jobless claims had been reported to have a rapid increase.
People Lining Up for Employment
Photo From: Business Finance
Automobile Plants Temporarily Shutting Down: Laid-off Workers Filed for Jobless Claims
Unemployment rates in America had drastically increased in the past weeks starting last June, after several automobile plants temporarily shut down. Along with that, claims for unemployment benefits had risen to up to 248,000 last week.
Much of the 248,000 who filed for Jobless claims are employees who were laid off from automobile plants temporarily shutting down.
The major increase was observed in a few states including Michigan where automobile plants were temporarily shut down for summer retooling. From recent data, a total of 30 out of the 53 states had reported an increase in their Jobless claims in the past weeks.
Read Also: July Social Security Income: To Boost Up To $140 In 33 States. Check Out the Payment Schedule!
Automobile Plants Temporarily Shutting Down: To Prevent Overproduction
In Michigan where the increase in Jobless claims had spiked due to automobile plants temporarily shutting down, many workers can file their claims.
In a report, the reason for automobile plants temporarily shutting down was to prevent overproduction and to give way for summer retooling.
Kentucky and New York also reported to have automobile plants temporarily shutting down.
In a reverse report, despite an increasing number of jobless claims that can be attributed to automobile plants temporarily shutting down, workers are also reported to find new employers quickly.
Read Also: $1000 Child Tax Credit To Boost Family Finances, Now Under A New Law
