The number of people who applied for unemployment insurance for the first time fell unexpectedly last week, marking its second consecutive fall.
Initial claims for unemployment benefits dropped by 19,000 to 787,000 in the week ending December 26, the Labor Department said on Thursday. Economists polled by Dow Jones had expected initial claims for unemployment benefits to rise to 828,000. The previous week’s total for initial claims was revised upwards by 3,000 to 806,000.
To be sure, the four-week moving average for the first filers rose by 17,750 to 836,750, signaling that the job market is still under pressure while the coronavirus pandemic is advancing.
“There is no real improvement in the data,” John Ryding, economic consultant for Brean Capital, told CNBC’s “Squawk Box”. “What we are seeing is a very difficult time in the economy with the infection of the virus that we saw and the slow launch of vaccination”.
The US is reporting at least 181,998 new cases of coronavirus a day, based on an average of seven days calculated by CNBC using data from Johns Hopkins University. Covid’s hospitalization rate in the country has also skyrocketed, reaching 125,000 for the first time.
US lawmakers recently approved a $ 900 billion Covid stimulus package, which includes direct payments of $ 600 for most Americans. This week, the House passed a measure that would increase those payments to $ 2,000, but the Senate blocked it.
These are breaking news. Please check back for updates.
Subscribe to CNBC PRO for unique insights and analysis, and live weekday scheduling around the world.