U.S. jobless claims dropped last week, falling for the second straight week as the data hit a one-month low.
Data from the U.S. Department of Labor showed Thursday that first-time jobless claims fell by 19,000 to 787,000 in the week ended Dec. 26, which was better than market expectations of 833,000 and last week’s 803,000.
Market analysis pointed out that although the data was better than expected, the U.S. employment data did not really improve in a meaningful way.
The data remains high nine months after the public health crisis and economic crisis caused by the new crown virus. The surge in confirmed cases of New Coronavirus led to the imposition of blockade measures, particularly on the food and hospitality sectors, which significantly limited consumer spending and affected employment. Until fiscal stimulus measures are actually implemented in every household, the development of the outbreak remains a major factor affecting the labor market recovery.
However, some investors still see the data as a positive sign. Although the impact of the new crown epidemic on the U.S. economy is still ongoing, the unexpected drop in jobless claims is still a welcome sign.
In terms of sub-regions, jobless claims rose more in California (and New York) than in other states due to the impact of the epidemic lockdown measures, while Illinois and Pennsylvania saw the largest rise in jobless claims.
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