(Center Square) – New unemployment applications have fallen to their lowest levels last week since the second week of March 2020, just before a stay-at-home order was issued nationwide to delay the spread of COVID-19.
The Ministry of Labor released data on Thursday, showing that the number of first-time unemployment filers fell by 36,000 in the week leading up to October 9, reporting a significant drop in new unemployment claims for the second straight week. ..
“The seasonally adjusted initial billing prepayment for the week ending October 9 was 293,000, a decrease of 36,000 from the previous week’s correction level,” said DOL. “This is the lowest level of first billing since 256,000 on March 14, 2020.”
The number of first-time filers and continuous recipients is low compared to the pandemic highs, but still higher than the pre-pandemic numbers.
“The four-week moving average was 334,250, a decrease of 10,500 from the previous week’s revised average, which is the lowest level of this average since 225,500 on March 14, 2020,” said DOL, who receives unemployment benefits. Added that has been declining consistently over the weeks.
“The number of seasonally adjusted insured unemployment for the week up to October 2 was 2,593,000, down 134,000 from the previous week’s correction level,” DOL said. “This is the lowest unemployment rate since 1.77 million on March 14, 2020.”
Many experts have predicted that the unemployment rate will decline after the $ 300 weekly federal unemployment allowance in the COVID era expires in early September. The data are promising, but it can be premature to draw definitive conclusions about their relationship to federal benefits.
Initially, the unemployment rate continued to rise after the benefits expired, raising questions about the accuracy of these forecasts. But now, unemployment has fallen sharply for the second straight week, suggesting that these forecasts are accurate and may continue for the next few weeks. But I’m still not sure if that will work.
Goldman Sachs was one of many groups that predicted a decline in unemployment after federal benefits expired. The group also suggested that it would take some time for these results to appear.
“Employment forecasts for the rest of 2021 offer federal UI additional payments of $ 300 per week to all UI benefit recipients, with increased employment growth due to the expiration of extended federal Unemployment Insurance (UI) benefits. We expect that there will be a significant increase in the number of employees. There are benefits and the qualifications for including gig workers have been expanded, “Goldman Sachs said in a September report. “Using personal-level data from household surveys, the employment rate of the economically large unemployed is statistically high, especially for leisure and hospitality workers, and those who have lost all benefits, due to the expiration of UI benefits. It was found to increase significantly, and it increased over time. “
New unemployment applications continue to decline | National News
Source link New unemployment applications continue to decline | National News