Jobless claims held nearly steady last week, interrupting a downward trend and showing the labor market’s recovery remains uneven, at a time when many states are discouraging workers from tapping jobless assistance.
Initial unemployment claims, a proxy for layoffs, rose by 2,000 last week to a seasonally adjusted 373,000, the Labor Department said Thursday. The previous week’s figure was revised up to 371,000. The four-week moving average, which smooths out volatility in the weekly figures, was 394,500, the lowest reading since March 2020.
The recent level of new claims is well down from the peak of 6.1 million in the spring of 2020, and roughly in line with historical averages, though it remains above the about 220,000 claims filed weekly in the year leading up to the pandemic-induced downturn.
The number of continuing unemployment payments made through regular state programs also fell to the lowest level since March 2020, for the week ended June 26, the Labor Department said.
Unemployment assistance payments made through pandemic programs fell by nearly a half million for the week ended June 19 as some states ended their participation last month.
The general downward trend in both initial and continuing jobless claims in recent months came as hiring accelerated in May and June, infection rates have declined with the widespread availability of Covid-19 vaccines, and about half of states are ending extended and enhanced unemployment benefits in June and July, ahead of a September expiration set by Congress nationwide.
Source: Dow Jones