The number of Americans seeking benefits out of work fell last week for the first time in about a month, as the labor market continued to recover amid a drop in COVID-19, the workers said on Thursday. federal authorities.
Initial claims for unemployment benefits, seen as an indicator of layoffs, fell to 326,000 last week, down 38,000 from the previous week from 364,000, according to information released by the Labor Ministry on Thursday. .
Thursday’s drop in new jobless claims ended a three-week shock streak and will increase the number of Americans using for unemployment.
Economists polled by Dow Jones expected new claims to fall to 345,000 after seeing an increase of 11,000 last week, largely driven by California because the state moved people from federal benefits to a state program to increase their demands for a week.
“After three consecutive weekly increases, new jobless claims have finally gone down,” said Mark Hamrick, senior financial analyst at Bankrate.
Weekly new claims have declined significantly from the 2020 peak of around 6.1 million new claims in a single week, but remain above the 200,000 new claims per week seen before the pandemic.
More than 2.7 million Americans were still receiving conventional state unemployment benefits as of Thursday, federal officials added.
Continuing claims fell 97,000 from the revised stage of the previous week, based on new knowledge. That figure rose to nearly 13 million at the same time last year, at the height of the pandemic.
This week’s unemployment report features Friday’s highly anticipated September non-farm payroll report, which is expected to show 500,000 new jobs created for the month, a big jump from the meager 235,000 jobs created in August.
We can expect the unemployment rate to have fallen to 5 pc last month from 5.2 pc in August, according to economists surveyed by Dow Jones.
The financial recovery has made progress in recent months, but inflation and a nationwide labor shortage have again held back further progress, economists say.
âThe way forward for the labor market and the economy in general is seen as quite optimistic. Yet a higher than normal degree of uncertainty remains, âsaid Hamrick of Bankrate.
âSome time ago, we thought maybe the reopening of the economy was roaring. But supply chain challenges and the Delta variant provided further twists and turns that slowed the recovery. “
For households with a median annual income of around $ 70,000, the current rate of inflation has forced them to spend an additional $ 175 per month on meals, gas and shelter, according to Mark Zandi, economist in Head of Moody’s Analytics.
Next week, the September report on the Bureau of Labor Statistics Client Value Index will bring further attention to the inflation picture and indicate whether the specific items that could experience major peaks in value are starting to show. mitigate.
But customer specialists have mentioned that the world’s shaken supply chain and shortages of various products and personnel in nearly every industry make it difficult to predict when costs might come down again.