Americans continued to hit the unemployment line last week in large numbers, as Covid’s steady rise in cases increased America’s unemployment problem.
Unemployment insurance claims totaled 900,000 in the week ending January 16, the Labor Department reported on Thursday. That was slightly less than the Dow Jones’ estimate of 925,000 and below the previous week’s downward revised total of 926,000.
Markets reacted little to the news amid continued expectations that President Joe Biden and Congress will soon provide another major fiscal infusion to help the economy during the pandemic. Stock futures pointed to a modest gain on Wall Street.
Continuous claims showed a slight decrease in the week, dropping from 127,000 to 5.05 million.
Weekly claims had been on a downward trend since the explosion in March and April in the early days of the pandemic, but started to increase again in October amid new business restrictions.
The hospitality industry has been hardest hit, as hotels, bars, restaurants and casinos have been closed or forced capacity limitations for guests. In January alone, the industry lost 498,000 workers.
The latest claims report showed that the total number of Americans receiving unemployment insurance continues to decline, albeit largely due to a drop in pandemic-related programs when 2020 came to an end.
In the most recent data, there were just under 16 million benefit recipients, up from 18.4 million. However, the decline in pandemic-related claims will not last, as the latest fiscal package includes extended benefits for displaced workers.
Several large states that had a heavier hand with restrictions saw the increase in claims from the previous week be reduced. California (-58,665), New York (-12,212) and Pennsylvania (-9,638) had notable declines. The games came from Arizona (15,347) and Illinois (13,948).
These are breaking news. Please check back here for updates.