Worker applications for unemployment benefits last week were nearly stable at 411,000, stalling at a lower level than achieved in recent weeks as the labor market gradually recovered.
The Ministry of Labor reported Thursday that the first unemployment claim, a substitute for layoffs, fell from 418,000, which was revised upward last week, to 411,000, when claims increased.
That rise Claims declined for the sixth straight week before the recent increase, a departure from recent trends. Claims have plummeted from the depth of the 2020 Covid-19 recession and have remained at half the level of January this year. The total weekly billing has decreased by more than 40% from the total of 742,000 posted in the week ending April 3rd.
The first bill last week was higher than expected, and the bill remained higher than the pre-pandemic level overall, but with its downtrend. Increased employment, lower unemployment rate Optimistic consumer sentiment shows the interests of the US labor market.
“The overall trend is heading in the right direction,” said Jordan Fanrain, senior economist at the Cooperative Banking National Association. “Currently there is a lot of labor demand, and there are a few more workers in the driver’s seat,” he added.
Employers are reporting an increase in worker demand as US Covid-19 cases have declined and more people have been vaccinated. State and local governments are phasing out business restrictions, and Americans are increasing their activities, such as traveling and eating out.
Another data released by the Commerce Department on Thursday also shows a stronger economic recovery. Last month, orders for long-lasting products increased by 2.3%. The ministry also released the latest calculations for US gross domestic product. This is a broad indicator of economic goods and service production. According to the update, GDP rose at an annual rate of 6.4% in the first quarter, in line with previous estimates.
The pace of employment growth is lagging behind a broader economic recovery due to a variety of factors that many economists expect to ease from summer to autumn.
These factors include prolonged health and childcare concerns. Republican-controlled states have also withdrawn from federal pandemic programs aimed at strengthening state unemployment benefits.
“Currently, there is a lot of labor demand, and there are a few more workers in the driver’s seat.”
Many Republicans say this enhancement, especially the federal government’s $ 300 supplement to state benefits, is on the sidelines of workers. Democrats say the additional benefits are important support for families and those who have not yet worked during the new recovery.
Half of the US states say they will end the supplement before the national expiration date scheduled for September. According to data compiled by Jeffreys, four states in the United States ended on June 12, and other states were scheduled to follow in the weeks leading up to early July.
Nera Richardson, chief economist at payroll firm ADP, said the end of the supplement could allow more workers to look for jobs, but the pace of job creation could remain volatile. Said it was expensive.
“It’s easy to make everything look like it’s been reassembled with one finger, but the infrastructure that supports people’s work is still being rebuilt,” she said, including childcare and other issues.
Eliza Forsythe, a labor economist at the University of Illinois at Urbana-Champaign, said the pace of hiring may not be as strong as previously expected, partly because the number of temporary severances has plummeted since the early days of the pandemic. Said.
Dr. Forsythe said workers currently looking for a job suggest that they are looking for a new job rather than returning to their previous job.
According to data from the Ministry of Labor, about 1.82 million unemployed people were temporarily dismissed last month, compared to 18.05 million in April 2020.
“We’re relocating, and most people returning to work are looking for new employers, which can change professions and industries, so the process is much slower,” Dr. Forsythe said. Said.
Competition among employers for new employees Shifting bargaining power to workersRSM Chief Economist Joseph Brusuelas said it could also affect job creation rates.
“This can lead to slower pace of improvement than expected, as workers are a little more noisy and have more choices about where they want to work.”
Write to Amaral Omeokuwe email@example.com
Copyright © 2020 DowJones & Company, Inc. all rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
Last week, U.S. unemployment claims were almost steady
Source link Last week, U.S. unemployment claims were almost steady