WASHINGTON: The number of Americans filing first-time claims for jobless benefits fell last week, but remained extraordinarily high amid widespread business restrictions to slow a rising tide of new COVID-19 infections and lack of additional fiscal stimulus.
Including a government-funded program for the self-employed, gig workers and others who do not qualify for the regular state unemployment programs, 937,525 people filed claims last week. "Even with inaccuracy, the ballpark size of total initial claims underscores that COVID-19 continues to inflect deep economic pain," said AnnElizabeth Konkel, an economist at Indeed Hiring Lab in Washington."With record virus cases combined with few outdoor options for businesses because of winter, the pain will continue."
U.S. stocks opened higher. The dollar fell against a basket of currencies. U.S. Treasury prices rose.Though the number of people receiving benefits after an initial week of aid declined 569,000 to 5.520 million in the week ending Nov. 21, that was because many had exhausted their eligibility, which is limited to six months in most states. The pace of decline in the so-called continuing claims has also slowed, suggesting a moderation in job growth.
The Federal Reserve's"Beige Book" report of anecdotal information on business activity collected from contacts across the nation, showed employment rising in all districts on or before Nov. 20, but the U.S. central bank noted"for most, the pace was slow, at best."