First-time jobless claims in the U.S. fell last week, the second consecutive week of decline, but claims remain at a high level.
The U.S. Department of Labor announced Thursday (Dec. 31) that first-time jobless claims were 787,000 for the week ended Dec. 26, down 19,000 from the previous week (806,000) and 46,000 lower than market expectations (833,000).
The four-week moving average of initial jobless claims was 837,000, up 18,000 from the previous value; although the number of single-week initial claims is now well below the peak of 6,867,000 in March, it is still higher than the peak of 665,000 during the 2007-2009 financial crisis.
In addition, the number of continuing claims (at least two weeks) also fell by 103,000 to 5.219 million in the week of Dec. 19. The continuing claims data are one week behind the initial claims data.
The total number of people receiving benefits through all unemployment programs fell by 800,000 to 19.6 million.
All of these figures indicate that the U.S. labor market remains under pressure amid the coronavirus (COVID-19, a Chinese communist virus) pandemic.
Reuters reports that while the number of first-time jobless claims in the U.S. unexpectedly fell last week, the number of unemployed in the U.S. is still on the rise more than nine months after the outbreak of the health and economic crisis caused by the virus pandemic.
The Wall Street Journal reports that the labor market recovery in the U.S. has been different in different sectors since this spring, with restaurants and retail stores in large shopping centers experiencing significant declines compared to last year, while restaurants and retail stores have seen business growth beyond pre-pandemic levels.
John Ryding, an economic adviser at Brean Capital, told CNBC’s “Business Talk” program, “The unemployment numbers haven’t really improved. We’re seeing a very difficult time in the economy with the rise in viruses and the slow rollout of vaccinations.”
He said some of the good news is not yet reflected in the single-week claims figures. He said the good news will be seen coming out by summer when enough people in the U.S. are vaccinated with COVID-19 and approaching herd immunity.
The president and Congress just passed a $900 billion COVID-19 stimulus package that includes $600 in direct payments to most Americans. A proposal that includes a $2,000 direct grant is currently being discussed in Congress.
According to Johns Hopkins University, over the past seven days, the average number of new confirmed CCHD diagnoses per day is 181,998; the number of hospitalizations has also skyrocketed, topping 125,000 per day for the first time.
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