Despite showing signs of a decline just two weeks ago, the number of Americans filing for unemployment benefits for the first time has risen back up past 700,000. The latest figures come despite ongoing economic reopenings across the country.
According to latest data published by the US Department of Labour, initial jobless claims for the week ending on April 3 rose by 16,000 to 744,000, following a revised print of 728,000 in the previous week. Economists surveyed by Bloomberg had expected a total of 680,000 claims, suggesting that the ongoing labour market recovery continues to remain volatile, despite a broader economic rebound.
The latest print comes a week after the nonfarm payrolls report for March showed an increase of 916,000, marking the largest job gain since August 2020. In the meantime, continuing claims provided an optimistic view on the US labour market, as the total fell by 16,000 to 3.73 million— the lowest since March 21, 2020.
The unexpected rise in claims shows that the US labour market still has a long road ahead until a pre-pandemic recovery is achieved, and the millions of jobs lost throughout the pandemic are recouped. Nonetheless, companies and businesses are expected to increase hiring over the coming months, especially as Covid-19 restrictions ease and the vaccination rollout accelerates.
Information for this briefing was found via the US Department of Labour and Bloomberg. Thee author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.