WASHINGTON: The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, though the labour market recovery is gaining traction as economic activity picks up, driven by increased vaccinations and massive fiscal stimulus.
Data for the prior week was revised to show 26,000 fewer applications received than previously reported, pushing total filings down to 658,000 and below their 665,000 peak during the 2007-09 Great Recession. In a healthy labour market, claims are normally in a 200,000 to 250,000 range.The government revised the claims data from 2016, which showed applications hitting a record 6.149 million in April 2020, instead of 6.867 million in March 2020.
Economists polled by Reuters had forecast 680,000 applications in the latest week. Virginia accounted for the bulk of the rise. There were also notable increases in California, Georgia, Kentucky, New Jersey and New York. In a separate report on Thursday, the Institute for Supply Management said its index of national factory activity jumped to a reading of 64.7 last month from 60.8 in February. That was the highest level since December 1983.
Through the first quarter planned layoffs plunged 35 per cent, compared the October-December period. At 144,686, job cuts last quarter were the fewest since the fourth quarter of 2019.