Despite an unprecedented level of monetary stimulus injected into the US economy, it appears that the labour market has yet to show significant improvement, with over 18 million Americans still collecting some form of employment insurance.
The latest Department of Labour data shows that the number of Americans filing for first time jobless claims soared back up to 0.861 million, which is noticeably worse compared to the 0.773 million that was initially anticipated. To make the situation even more bleak, the previous week’s improvement to 0.793 million was significantly revised up to 0.848 million.
Several states across the US saw a notable increase in claims last week, as Illinois and California soared to the top of the list with 33,491 and 20,657 additional jobless claims, respectively. Conversely, Texas saw new jobless claims drop by 12,428, while Rhode Island declined by 6,269.
The latest jobless data suggests that America’s labour market still has a long road ahead before approaching pre-pandemic levels. Despite this, the remainder of the US economy has shown better-than-expected improvement, as retail sales surged at the beginning of the year thanks to stimulus checks authorized by Congress in December. In the meantime, Congress is in the midst of negotiating yet another stimulus bill to the tune of $1.9 trillion, which would extend jobless benefits that are otherwise slated to expire come March.
Information for this briefing was found via the DOL. The 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.