Claims for unemployment benefits for the first time showed an unexpected jump to 770,000, while the job market tries to recover from the Covid-19 pandemic that sent more than 22 million Americans to the unemployment line a year ago, the Department of Labor reported. I work on Thursday.
Economists polled by Dow Jones had expected a total of 700,000 for the week ending March 13. The total represented an increase from the 725,000 revised upward from the previous week.
The report came amid hopes that the US labor market is showing real signs of recovery from the coronavirus crisis, which has seen large areas of the economy shut down or slow down and has been particularly burdensome for those working in jobs related to services.
Texas, Florida and Mississippi are among the states that have drastically eliminated or reduced restrictions due to the pandemic. Pennsylvania is expected to reduce its business limits in early April and other states are expected to follow suit amid warnings from some health officials about premature reopening.
Continued claims, which run a week behind the title number, have changed little by 4.12 million.
With coronavirus cases falling or stagnating and hospitalizations and deaths dropping dramatically, several states began to reopen. In addition, the United States’ vaccination rate is around 2.4 million a day, providing even more hope that the pandemic’s impact on national health and the economy is decreasing.
A separate report on Thursday morning showed that manufacturing continues to recover sharply.
The manufacturing perspective of the Federal Reserve of Philadelphia recorded a reading of 51.8, representing the difference of percentage points between the companies that reported growth in relation to those that saw a decline. It was the highest reading of the index since April 1973.
This week’s number of unemployment claims involves the week of research that the Bureau of Labor Statistics uses to compile its non-farm payroll report, suggesting that March earnings may be silenced.
The economy has created 545,000 jobs so far in 2021, and the unemployment rate has dropped to 6.2%.
Despite labor market gains, the Federal Reserve indicated on Wednesday that it plans to continue its moderate monetary policy in the future. The Fed said it will keep short-term lending rates close to zero until the economy reaches full employment, including income, race and gender.
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