Top Line

On the heels of the biggest cutoff for federal unemployment benefits in history, new jobless claims posted an unexpected increase this month for three straight weeks, according to new data released Thursday, giving economists another signal. That the labor market may struggle more than anticipated. The United States recovers from a recent surge in Covid-19 cases.

important facts

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According to the weekly, about 362,000 people filed initial jobless claims in the week ending September 25, an increase of 11,000 from the previous week. statistics Released on Thursday.

According to Businesshala, economists were expecting only 330,000 new claims; Reading hit a pandemic low of 312,000 in the week ending September 4, but has ticked up every week since.

According to the Department of Labor, there are still 8.4 million people unemployed in the United States, up from 4 million in February 2020.

main background

Several data points in recent weeks have pointed to ongoing conflicts around employment. The labor market last month posted its worst monthly performance since January, adding only 235,000 jobs back despite forecasts of nearly a million additions. “The delta version of COVID-19 has impacted job market recovery,” said Mark Zandi, chief economist at Moody’s Analytics, after Powell and other experts said the resurgence of the pandemic had begun to ease the economic slowdown. health benefit. The new claims in the last two weeks also came in more than expected. Meanwhile, an estimated 7.5 million Americans stopped receiving jobless benefits as a result of the federal government’s pandemic-era unemployment relief ending this month, according to Bank of America, while another 3 million saw their unemployment check. There is a deductible of $300 per week. The largest cutoff of US unemployment benefits in history.

tangent line

In a press conference last week, Federal Reserve Chairman Jerome Powell lamented the slow recovery of the labor market. “It still seems like that inexplicable . . . the people who were largely working in February 2020 [will] Get back to work when it’s time to do so; It may take longer,” Powell said, blaming the spread of the delta version of Covid-19 for the loss of jobs, particularly in the travel and leisure industries. On Wednesday, the Fed said unemployment could remain above pre-pandemic levels until 2023. According to the Labor Department’s monthly jobs report, the unemployment rate was seen in the labor market at around 5.2% in August, down from 5.4% in July and significantly higher. Pre-pandemic levels below 4%.

New unemployment claims unexpectedly rise again as Fed warns job market recovery ‘could take a long time’ (Businesshala)

New unemployment claims rising unexpectedly despite end of federal benefits for 11 million Americans (Businesshala)

US adds 235,000 jobs in August – ‘major’ labor market slowdown as delta variant reveals threat to economic recovery (Businesshala)

This is a developing story. Please check back for updates.