Rise in U.S. weekly jobless claims belies improving labor market conditions

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The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, though the labor market recovery is gaining traction as economic activity picks up, driven by increased vaccinations and massive fiscal stimulus.

FILE PHOTO: Empty hangers hang at a dry cleaners, as businesses struggle with continued work from home protocols to limit the spread of the coronavirus disease , in Philadelphia, Pennsylvania, U.S., March 2, 2021. REUTERS/Caroline Gutman/File Photo

Initial claims for state unemployment benefits jumped 61,000 to a seasonally adjusted 719,000 for the week ended March 27, the Labor Department said. About 28 more million applications were submitted under the government-funded Pandemic Unemployment Assistance program, which covers the self-employed, gig workers and others who do not qualify for the UI programs.

Including the PUA program, 951,458 people filed claims last week, remaining below one million for a second straight week. According to the ISM, “significantly more companies are hiring or attempting to hire than those reducing labor forces.”

 

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