Tthe number of Americans making new claims for Unemployment benefit fell close to pre-pandemic levels last week as the labor market continues to recover.
However, labor shortages remain an obstacle to faster employment growth.
The weekly report on US unemployment claims Ministry of Labor On Thursday, the latest economic health data also showed that unemployment benefits have declined a 20 month low Beginning of November.
The demand for labor is great
The economy is get going again after a lull over the summer as a wave of COVID-19 Infections caused by the Delta variant hit the nation.
“Labor demand is very strong and labor is scarce, so layoffs are very low right now,” said Gus Faucher, chief economist at PNC Financial in Pittsburgh, Pennsylvania.
The seasonally adjusted first-time applications for state unemployment benefits fell by 1,000 268,000 for the week ending on November 13, the Ministry of Labor announced on Thursday. That was the lowest level since the coronavirus pandemic began in the United States more than 20 months ago.
Economists polled by Reuters had forecast 260,000 applications in the last week.
The smaller decline was due to the fact that the model the government uses to filter seasonal fluctuations out of the data was less generous last week.
Major decline in applicants in Kentucky
The unadjusted claims decreased by 18,183 238,850 last week. The decline was led by Kentucky, likely due to auto workers returning to factories after layoffs as auto makers grapple with a global semiconductor shortage.
There were also big declines in Michigan, Tennessee, and Ohio, which have a heavy automaker presence.
Compensate for the decreases an increase in filings in California.
The seventh consecutive weekly drop in claims left them just above the 256,000 mark in mid-March 2020 and in a range associated with a healthy job market.
Receivables have declined from a record high of 6.149 million Beginning of April 2020.
The continuous improvement is in line with other data that a Acceleration of economic activity At the beginning of the fourth quarter, after the gross domestic product in the period from July to September had grown as slowly as it had for more than a year.
Retail sales growth
Retail sales rose sharply in October and factory production also recovered significantly.
US stocks opened higher. The dollar lost against a basket of currencies. US Treasury bond prices were lower.
The claims report showed that the number of people who continued to receive benefits after an initial week of assistance rose to 129,000. has decreased 2,080 million in the week of November 6th. That was also the lowest level since mid-March in 2020.
All in all 3.185 million people collected unemployment checks on all programs for the week ending October 30th.
Shrinking unemployment figures give rise to hope that more people will soon be returning to work. Millions of unemployed Americans stay at home even after the expiry of generous federally financed services and the reopening of schools for face-to-face teaching.
The claims data covered the period when the government asked companies about the non-farm payroll in the November Employment Report.
Claims have been falling since mid-October, suggesting stronger employment growth this month. But there is an acute shortage of labor 10.4 million vacancies from the end of September.
Uncertainty remains
“There is some uncertainty as labor supply and the delta variant are key to monthly job growth,” said Ryan Sweet, chief economist at Moody’s Analytics in West Chester, Pennsylvania. “The good news is that the Delta variantThe labor market impact in November will be less than it was in the recent wave. “
The economy 531,000 jobs created in October. Employment growth averaged 582,000 jobs per month this year and the workforce has fallen 3 million from pre-pandemic levels.
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