ADP’s chief economist, Nela Richardson, discusses the latest report on jobs, productivity, business reopening and rising interest rates.
The number of Americans applying for unemployment benefits for the first time declined last week, as the number of coronavirus cases declined across the country and many states lifted restrictions on business activity.
Figures released on Thursday by the Department of Labor show that 712,000 Americans applied for unemployment insurance for the first time in the week ending March 6, down from the 725,000 predicted by Refinitiv economists.
Weekly unemployment insurance claims have remained stubbornly high for months, hovering at around four times the typical pre-crisis level, although well below the nearly 7 million peak that was reached when home stay requests were first issued time a year ago, in March.
There are about 10 million fewer jobs than last year, in February, before the crisis started.
Continued claims, or the number of Americans receiving consecutive unemployment benefits, fell to 4.14 million, down 193,000 from the previous week. The report shows that about 20.1 million Americans were receiving unemployment benefits in the week ending February 20, an increase of 2.08 million over the previous week.
Many more Americans are receiving unemployment benefits from two federal programs that Congress established with the approval of the CARES Act in March: one extends aid to self-employed individuals, temporary workers and others who are not normally eligible for benefits, and the other provides aid for those who have exhausted their state benefits.
The federal government renewed these programs in late December with the approval of a $ 900 billion aid package, which includes an additional $ 300 a week unemployment benefit, a $ 600 one-time stimulus check for most of adults and new financing for a small business rescue program.
President Biden is expected to sign the $ 1.9 trillion stimulus package on Friday, extending unemployment programs until September 6. The measure also includes a $ 1,400 stimulus check for millions of Americans, a one-year expansion of child tax credit and hundreds of billions of dollars in aid to state and local governments, vaccine distribution efforts and schools.