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U.S. weekly jobless claims below one million; but labor market recovery ebbing

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The number of Americans filing new claims for unemployment benefits fell below 1 million last week for the second time since the COVID-19 pandemic started in the United States, but that does not signal a strong recovery in the labor market.

FILE PHOTO: FILE PHOTO: People visit the Destiny USA mall during the reopening, as the coronavirus disease restrictions are eased, in Syracuse, New York, U.S., July 10, 2020. REUTERS/Maranie Staab/File Photo/File Photo

There are growing signs the labor market recovery from the depths of the pandemic in mid-March through April is faltering, with financial support from the government virtually depleted. Initial claims for state unemployment benefits fell 130,000 to a seasonally adjusted 881,000 for the week ended Aug. 29. Economists polled by Reuters had forecast 950,000 applications in the latest week. A staggering 29.2 million people were on unemployment benefits in mid-August.

Unadjusted claims rose 7,591 to 833,352 last week. The increase in the raw numbers, which many economists prefer to focus on, added to a raft of data suggesting the labor market recovery was ebbing.

 

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Weekly jobless claims total 881,000, better than expected as labor market continues to healFirst-time claims for state unemployment benefits were expected to total 950,000 last week, according to economists surveyed by Dow Jones. Grateful for a better than expected current report. Still, we ADD those to the millions still out of work. Would be nice to see more attention paid to enabling THAT recovery and less about the BOOMING Stock Market. Rick Santelli, man of the people! Wow, who expected 950K when a million was so near?
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