On Wednesday, July 7, the Labor Department’s Job Openings and Labor Turnover Survey announced that U.S. job openings climbed to a record-high of 9.21 million in May. Meanwhile, 373,000 Americans filed unemployment claims during the week ending on July 3. To help investors better understand this disconnect between jobs and unemployment claims, America’s Voice Live (AVL) turned to Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insight.
“I think in a lot of cases, people are just making rational economic decisions,” Sawchuk tells AVL’s Steve Gruber. “They’ve been incentivized to stay home. The $300 a week employment subsidy plus the state benefits, that’s $500 a week. That’s more than they are going to make at a lot of these jobs. Until that gets better, I think you are going to see more of the same.”
Sawchuk also notes that the difficulties in filling open jobs may have some major impacts on the economy as businesses work to adapt and fill in the gaps.
“All these businesses are going to go and find ways to replace these workers, whether it’s computers or robots or artificial intelligence or different processes,” says Sawchuk. “Some of these jobs are just not going to come back, and then we’re going to have an even bigger problem.”
The availability of future jobs is not the only risk. Sawchuk also explains that taxes could increase as more people pay less in federal taxes due to lack of income as well as the stage potentially being set for a universal basic income.
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Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.
Securities offered through J.W. Cole Financial, Inc. (JWC) Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). Sawchuk Wealth and JWC/JWCA are unaffiliated entities.