More Apply for Jobless Benefits

Recently, the labor department released the data of new applications for unemployment insurance. By August 4th, the application increases to 316,000, the highest point since late June. However, claims are still lower than one year ago, which is 319,000. The government also reported the nation’s unemployment rate of July. It was 4.6 percent in July, the highest in the recent six months, indicating new job creation is slowing down.
The unemployment insurance reminds me of the decline of unionism. Since 1960s, the percentage union members in the US are declining all the time. Besides the structural changes and managerial opposition, substitution effect is another important factor. Many of today’s public programs provided by the government were only available to workers through unionization, so employees of today do not have to join the unions to enjoy these benefits. Still, unions can bring some other benefits such as a higher wage, so to join or not to join the union is really a personal decision.