As many economic gains across the US are beginning to taper off following a summer rebound spurt, unemployment claims are certainly not immune. According to data released by the US Department of Labour, initial jobless claims reached 840,000 last week, which is slightly more than Dow Jones economists’ expectations of only 825,000 new claims.
Nonetheless, it is a tad bit lower than the 849,000 claims that came in the week earlier, and is the lowest number of weekly claims since the onset of pandemic lockdowns in March.
Since the World Health Organization declared a worldwide pandemic, which ultimately lead to the shut-down of the US economy, initial jobless claims have not dipped below 800,000. However, the number of continuing claims once again dropped sharply by 1 million to a total of 10.98 million. This is likely due to many Americans returning to work after the $600 per-week employment benefit ran out at the end of July.
In the meantime, the Labour Department reported a rise of 661,000 in nonfarm payrolls, which although is still lower than Wall Street estimates of 800,000, pushed the unemployment rate down to 7.9%. Nonetheless, there are still more than 25.5 million Americans receiving some form of employment benefits, with over half – 13.4 million to be exact – collecting benefits under emergency programs set up for those that are ineligible for traditional benefits.
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.