Latest News

Claims for U.S. Jobless Benefits Plunge to Lowest Since 1969

Economic Indicators1 hour ago (Nov 24, 2021 13:48)

2/2
© Bloomberg. Contractors work at the Amazon HQ2 development at Metropolitan Park in Arlington, Virginia. Photographer: Pete Kiehart/Bloomberg

2/2

(Bloomberg) — Applications for U.S. state unemployment benefits plunged last week to a level not seen since 1969, which if sustained would mark the next milestone in the labor market’s uneven recovery.

Initial unemployment claims in regular state programs fell by 71,000 to a seasonally adjusted 199,000 in the week ended Nov. 20, Labor Department data showed Wednesday. The median estimate in a Bloomberg survey of economists called for 260,000 applications.

However, the larger-than-expected drop may be explained by how the government adjusts the raw data for seasonal swings. Wrightson ICAP chief economist Lou Crandall pointed out in a recent note that seasonal factors were anticipating a smaller increase in unadjusted claims compared with the same time last year as the labor market was struggling to recover.

Before seasonal adjustments, last week’s initial jobless claims rose by about 18,000.

Claims stood at 216,000 at the end of February 2020 leading up to the onset of Covid-19 in the U.S., which pushed applications up to a peak of 6.1 million in early April 2020. They’ve since declined as the economy reopened more broadly and Americans returned to work. Also, federal pandemic unemployment benefits ended by Sept. 6 in all states.

Even so, millions of Americans are still choosing to sit on the sidelines, frustrating employers who are desperate to fill a near-record number of positions. Child care remains a serious issue for working parents, especially as Covid cases pick up again in many states and disrupt in-person learning.

The October jobs report showed payrolls increased 531,000 after large upward revisions to the prior two months. Economists are calling for another half a million to be added in November, which will be reported on Dec. 3.

©2021 Bloomberg L.P.

Claims for U.S. Jobless Benefits Plunge to Lowest Since 1969

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

You may also like

Leave a reply

Your email address will not be published.

More in Latest News