New unemployment claims remained high last week as 745,000 people filed for benefits , 9,000 more than the previous week—it’s a sign that the struggling labor market has a long way to go even as as vaccine distribution ramps up, new coronavirus cases fall and states begin to reopen.... [+]Despite the modest downward trend in initial claims over the last several months , claims remain incredibly high by historical standards.
both announced they would drop their mask mandates this week despite warnings from public health officials.Key Background Even though vaccinations are picking up and new coronavirus cases are dropping, officials have warned that the U.S. economy is still facing a long road to recovery. “The economic recovery remains uneven and far from complete, and the path ahead is highly uncertain,” Federal Reserve chair Jerome Powell
, adding that the “single best” policy to return the economy to normal would be to encourage people to get vaccinated. Powell has repeatedly said that economic recovery depends “significantly” on the course of the ongoing pandemic."Although we can almost taste improvement in the economy likely coming, we’re not there yet as we look at the latest claims numbers,” Bankrate senior economic analyst Mark Hamrick said.
The Labor Department will release jobs data for the month of February on Friday. Economists are expecting that the unemployment rate held relatively steady around 6.3%.