The Labor Department reported on Thursday that the number of people applying for unemployment benefits for the first time was higher than expected last week, with 719,000 workers going to the unemployment line.
The Dow Jones Industrial Average was 675,000, compared with a downward revision of 658,000 last week.
Although the number of weekly applications is still too high from a historical perspective, this trend is declining as the U.S. economy continues to reopen and nearly 3 million Americans are vaccinated against Covid-1
Consecutive claims fell by 46,000 to less than 3.8 million, one week behind the headline figure.
Ian Shepherdson, chief economist of Pantheon Macroeconomics, said: “Adding these two weeks together, it is clear that the trend of claims is declining.” “We expect that as the economy reopens, The second quarter will continue to decline sharply, which will make it easier for companies under financial pressure to retain employees.”
Another sign of the decline in unemployment is that at the beginning of the pandemic, the four-week moving average of claims fell to 719,000, the lowest level since March 14, 2020.
The total number of recipients of benefits also dropped sharply, dropping by 1.5 million to 18.2 million, mainly due to the decrease in the number of recipients of pandemic-related subsidies. The data is two weeks behind.
According to unadjusted data, at the state level, Virginia (+30,696), Kentucky (15,869), Georgia (11,862) and California (9,628) reported the largest increases. Ohio (-15,718) and Massachusetts (-12,755) saw the biggest declines.
The report is one day ahead of the government’s non-agricultural employment figures in March. It is expected that the non-agricultural employment figures will increase by 675,000 in March from 379,000 in February.
In addition to its efforts to fight the virus, the Biden administration continues to work hard to raise funds to promote an economy that shows signs of steady growth. The President proposed a $2 trillion spending plan on Wednesday, which will be based on a stimulus package of more than $5 trillion that has been spent or announced to bring the United States out of the crisis and downturn.
Although the pace of job growth slowed in the early winter, recent signs indicate that the number of recruits has increased.
The wage processing company ADP estimates that the company added 517,000 workers in March, the fastest rate since September. The recent manufacturing report also shows that there will be more recruitment plans in the future, and job growth in the hard-hit hotel industry seems to be the strongest. Due to social distancing and government restrictions, the industry has suffered the most.