U.S. jobless claims up to 744K as virus still forces layoffs – Denver, Colorado
Denver, Colorado 2021-04-08 09:05:49 –
Washington — The number of Americans applying for unemployment benefits increased to 744,000 last week. This shows that despite being vaccinated with COVID-19, consumers are confident and the government is distributing aid throughout the economy, many employers are still cutting jobs. I am.
The Ministry of Labor said Thursday that applications had increased by 16,000 from 728,000 a week ago. Since the virus rushed into the economy last March, unemployment claims have plummeted. However, they remain high by historical standards. Prior to the pandemic, weekly applications typically fell below 220,000 per week.
According to the government, 3.7 million people received traditional state unemployment benefits in the week leading up to March 27. A total of 18.2 million people received some form of unemployment assistance during the week of March 20, including a supplementary federal program established last year to help the unemployed survive the health crisis.
Economists monitor weekly unemployment claims for early signs of where the job market is heading. The application is usually a layoff agent. Applications usually decrease as the economy improves. Alternatively, they will rise as employers shrink in response to weak consumer demand.
However, during the pandemic, the numbers became an unreliable barometer. The state is struggling to clear the unprocessed portion of the unemployment application, and allegations of fraud have clouded the actual amount of headcount reductions.
However, almost all measures have strengthened the economy. During March, employers added 916,000 jobs, the highest number since August, and the unemployment rate dropped from 6.2% to 6%. In February, the pace of recruitment reached record highs. Last month, consumer confidence hit a record high for the year.
And this week, the International Monetary Fund predicts that the US economy will grow 6.4% this year. It is the fastest annual pace since 1984 and is the strongest of the wealthiest countries in the world.
All of this suggests that employers will continue to hire steadily this year as the wider economy improves. That said, US jobs are still 8.4 million less than in February 2020, just before the pandemic. The number of newly confirmed cases of coronavirus, which decreased sharply from early January to early March, has peaked in the past month. In addition, the vaccination rate of the most vulnerable older Americans has slowed dramatically, despite expanding vaccine supplies.
Data company Womply also reports that the percentage of companies that remained closed last week has increased since the beginning of March. For bars it went from 38% to 45%. 35% to 46% at the hairdressing shop. For restaurants it is 30% to 38%.
U.S. jobless claims up to 744K as virus still forces layoffs Source link U.S. jobless claims up to 744K as virus still forces layoffs
