Lower unemployment claims suggest US jobs market is improving

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Initial jobless claims in regular state programs fell by 249,000 to 1.19-million in the week ended August 1

A"Now Hiring" sign advertising jobs at a hand car wash is seen along a street, as the spread of the coronavirus disease continues, in Miami, Florida, U.S. May 8, 2020. Picture: REUTERS/MARCO BELLO

Continuing claims — the total number of Americans claiming ongoing unemployment benefits in those programmes — decreased by 844,000 to 16.1-million in the week ended July 25, compared with a median projection of 16.9-million. Legislators are still working towards a stimulus package that would once again bolster the size of millions of Americans’ unemployment checks, but in the meantime, the extra $600 that has helped keep incomes and spending afloat in recent months has expired.

On an unadjusted basis, initial claims decreased to 984,192 nationwide, the first time since mid-March it dropped below 1 million. All states but Rhode Island, which showed little change, posted declines from the prior week. Even in states where coronavirus cases have been elevated, including California, Texas and Florida, applications for benefits fell in the latest week.

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