Washington — The number of Americans applying for unemployment assistance increased to 351,000 for the second straight week last week. This indicates that the coronavirus delta variant may be at least temporarily impeding the recovery of the job market.
A Thursday report from the Ministry of Labor showed that unemployed claims increased by 16,000 from the previous week.
As the employment market strengthens, unemployment aid applications that generally track layoffs have fallen since exceeding 900,000 earlier this year, reflecting the economic resumption after the pandemic recession. The four-week moving average of claims, which smoothes weekly fluctuations, recorded six consecutive declines, reaching a pandemic low of 336,000.
Unemployment claims are still rising slightly. Before the virus destroyed the economy in March 2020, there were generally about 220,000 cases per week.
In a research report, Contingent Macro Advisors concluded that the recent surge in unemployment allowance applications is likely to reflect technical issues in claim processing, especially in California and Virginia last week. rice field. The weeks aren’t alarming yet, but the next few weeks definitely need to be watched carefully. “
American employers have increased their employment rapidly since cutting 22 million jobs in March and April 2020, as the pandemic and the closure to contain it almost stopped economic activity. Since then, the economy has regained about 17 million jobs as vaccine deployments have opened and expanded businesses and encouraged Americans to return to shopping, traveling and eating out.
However, employment, which averaged more than 585,000 a month this year, slowed to just 235,000 in August as Delta Variant hindered recovery. Restaurants and bars cut nearly 42,000 jobs last month due to an increase in COVID-19 cases.
Overall, 2.8 million Americans received unemployment benefits during the week of September 11. There was an increase of 131,000 from the previous week.
Earlier this month, more than 8 million people lost all their unemployment benefits due to the expiration of two federal programs for gig workers and those who have been unemployed for more than six months. These emergency programs were created in March of last year to help alleviate the financial difficulties caused by the pandemic.
An additional 2.7 million people who received regular state unemployment assistance lost $ 300 a week in federal unemployment supplements last week.
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US unemployed claims soar near pandemic lows | News
Source link US unemployed claims soar near pandemic lows | News