Top Line

New jobless claims fell for the first time in nearly a month last week, according to new data released Thursday, offering some relief to economists worried the labor market could struggle more than anticipated because of the recent surge in United States Covid-19 cases. recovers from. .

important facts

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According to the weekly, about 326,000 people filed initial jobless claims in the week ending October 2. statistics issued on Thursday, 38,000 less than the previous week.

According to Businesshala, economists were expecting about 345,000 new claims; Readings dipped the pandemic tally 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, of weak employment readings, as experts concerned with the resurgence of the pandemic begin to downplay the economic recovery. have make. New claims in the last three weeks also came in more than expected.

tangent line

According to Bank of America, the federal government’s pandemic-era unemployment relief ending last month resulted in an estimated 7.5 million Americans stopping receiving jobless benefits, despite the collapse in the labor market, while another 3 million people took their unemployment checks. Saw a cut of $300. week—marking the largest cutoff of US unemployment benefits in history.

what to see

The labor market’s next big data point comes Friday, when the Bureau of Labor Statistics is set to report the unemployment rate for September. According to the Labor Department’s monthly jobs report, the unemployment rate was recorded at around 5.2% of the labor market in August, up from 5.4% in July and significantly higher than pre-pandemic levels of just below 4%. Economists estimate the economy added about 500,000 jobs last month, according to data from Businesshala.

New jobless claims rising unexpectedly despite nearly 6 million Americans leaving unemployment benefits (Businesshala)

Here’s Why the 6 Million Americans Who Lost Covid Unemployment Benefits Won’t Return to Work This Year (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.