The number of people applying for unemployment benefits for the first time dropped unexpectedly last week. This is the second consecutive decline.
The Labor Department said on Thursday that in the week ending December 26, initial jobless claims fell by 19,000 to 787,000. Economists surveyed by Dow Jones predict that initial jobless claims will rise to 828,000. The total amount of first claims in the previous week was raised by 3,000 to 806,000.
To be sure, the four-week moving average of first-time applicants rose by 1
John Ryding, an economic consultant at Brean Capital, told CNBC’s “Squawk Box”: “There is no real improvement in the data.” “What we are seeing is a very difficult period in the economy, because we have seen the pick-up of the virus and the slowness of the vaccine. roll out.”
According to the 7-day average calculated by CNBC based on data from Johns Hopkins University, the United States records at least 181,998 new coronavirus cases every day. The country’s Covid hospitalization rate has also soared, exceeding 125,000 for the first time.
Members of the United States Congress recently approved a $900 billion Covid stimulus plan, which includes a direct payment of $600 to most Americans. This week, the House of Representatives passed a measure to increase these payments to $2,000, but the Senate blocked the action.
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