The Ministry of Labor reported Thursday that unemployment insurance claims surged to 965,000 last week amid signs of a slowdown in employment due to pandemic regulation.
The total was below Wall Street’s estimate of 800,000 and above the previous week’s total of 784,000.
The market was barely responsive to that number, as the decline in economic activity is expected to be hit by more stimulus from Washington. Elected in the presidential election late Thursday, Joe Biden has announced expectations for another package that could exceed $ 1 trillion.
Futures continued to show rising Wall Street opening prices.
Still, the weekly figures ending January 9 were another sign of economic turmoil brought about by restrictions on activities aimed at combating the spread of the virus. The total was the highest since the week of August 22, when just over one million claims were filed.
Continuous billing was also high, increasing from 199,000 to 5.27 million. This number is a week behind the total weekly billing and has increased for the first time since late November.
Despite the increase in weekly numbers, the total number of people receiving benefits under all governments has plummeted. That level dropped from 1920 million last week to 18.4 million. The data runs two weeks behind the total weekly billing. This decline, primarily due to a decline in applications for emergency pandemic claims, far exceeds the 2.18 million people who received benefits during the same period a year ago.
The increase in claims has spread to a few states, primarily those with more stringent restrictions on business.
According to unadjusted data, Illinois, where Chicago is cracking down on restaurants, saw a surge of 51,280. The other big winner was California. California didn’t even allow outdoor dining, and billing increased by 20,587, up 13%. New York rose 15,559.
However, there was also a significant increase in some relatively loosely restricted states. Florida more than doubled that claim to 50,747, while Texas saw an increase of 14,282.
Recently, there are growing signs that the employment increase that began in May has begun to cool.
In December, non-farm payrolls declined for the first time during the recovery, with the unemployment rate declining by 140,000 while remaining at 6.7%.
The Federal Reserve Board also reported Wednesday that business contacts across the central bank’s 12 districts reported both reduced employment and difficulty replenishing positions. Economists generally believe that the 2021 economy will start slowly, but will gain momentum as the years progress and the Covid-19 vaccine becomes more widespread.
Unemployment claims surge to the highest weekly total since August
Source link Unemployment claims surge to the highest weekly total since August