Jobless Claims Fall Slightly After Fed’s Powell Says Labor Market Damage Is ‘Dramatically Understated’

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Another 793,000 Americans filed new claims last week.

Another 793,000 Americans filed for regular state unemployment benefits last week—19,000 less than the previous week but higher than the 760,000 new claims economists wereA waiter at Baby Brasa carries a tray of food towards the enclosed outdoor dining structure during aAnother 334,524 people filed claims under the Pandemic Unemployment Assistance program, which extends benefits to self-employed workers, freelancers, and gig workers not eligible for traditional state programs.

Thursday’s initial claims data is the lowest since the beginning of January—a sign that conditions are beginning to improve even as unemployment levels remain well above historical highs. Some of that improvement could be attributable to gradual reopenings across the country as states like California and New York relax stay-at-home orders and other restrictions.

But the progress is extremely slow: last week, the Labor Department reported that the U.S. added justIn a Wednesday speech at the Economic Club of New York, Federal Reserve Chair Jerome Powell said that the unemployment data published by the Labor Department has “” the true damage the crisis has done to the labor market. He said that the real unemployment rate in January was almost 10%—significantly higher than the 6.

 

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Covid has been a national disaster. American entrepreneurs and financial policy makers will use creativity to go forward more rapidly than anticipated. Mental health and social support also will be critical to help alleviate the resultant pain of Americans.

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