WASHINGTON, D.C. — Today, the Labor Department reported that U.S. jobless claims rose by 10,000 more than expected last week, with economists and other experts citing Donald Trump’s trade war throwing businesses into uncertainty as a primary reason for increased layoffs. Pending home sales also dropped sharply in April, as Trump considers privatizing Fannie Mae and Freddie Mac, which could mean thousands of dollars in additional mortgage costs for the average family.
In response, Defend America Action Senior Spokesperson Rodericka Applewhaite released the following statement:
“Call it the Trump effect: jobless claims are rising, pending home sales are falling, and hardworking American families are facing huge cuts to Medicaid, huge cuts to food assistance, higher prices at the store, and thousands more in costs. In Trump’s economy, the rich get richer and the rest of us get screwed.”
Background:
Jobless numbers rose more than expected last week. According to BLS data released on May 29, the number of Americans filing new applications for jobless benefits increased more than expected last week and the unemployment rate appeared to have picked up in May. Initial claims for state unemployment benefits rose 14,000 to a seasonally adjusted 240,000 for the week ended May 24. Economists had forecast 230,000 claims. The outlook for the economy is dimming with other data showing a sharp decline in corporate profits in the first quarter.
Home sales dropped precipitously in April as mortgage rates climbed. Contracts to buy U.S. previously owned homes fell more than expected in April as rising mortgage rates and economic uncertainty weighed on demand. The National Association of Realtors (NAR) said on May 29 that its Pending Home Sales Index, based on signed contracts, dropped 6.3% to 71.3 last month as the average rate on a 30-year fixed-rate mortgage jumped to 6.81% in April from around 6.65% in March.
###