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Unemployment insurance claims for the first time reached 3.84 million last week as the wave of economic pain continues, though the worst appears to be in the past, according to Labor Department figures on Thursday.
Economists surveyed by Dow Jones had been looking for 3.5 million.
Unemployment claims for the week ending April 25 reached the lowest level since March 21, but pushed the six-week total to 30.3 million as part of the worst job crisis in U.S. history. Claims hit a record 6.87 million for the week of March 28 and have decreased every week since.
The figure initially reported last week was revised from 15,000 to 4.4 million, meaning the most recent total is a decrease of 603,000.
Continuing claims rose to just 18 million, an increase of 2.2 million from the previous week.
The four-week moving average, which smoothes volatility, rose to 13.3 million, a 3.7 million increase from the previous week average.
The rise in unemployment came amid efforts to stem the spread of the coronavirus. While some states and municipalities have started to re-launch their respective economies, much of the key infrastructure in the US. USA It remains blocked.
Applications continue at a fast pace as the government has expanded the list of people eligible for benefits and amid continued difficulties in state offices for those filing claims. The Institute for Economic Policy earlier this week estimated that the current level of claims is likely to underestimate as many as 12 million of those who are eligible for benefits but do not obtain them due to inability to file or other obstacles.
Washington state posted the highest gains for the week, rising 62,282, a 75% increase from the previous week, according to unadjusted figures. By contrast, California sees a decrease of more than 200,000 and Pennsylvania fell by 63,312.
Problems in the labor market reflect a further decline in economic activity that has only recently been reflected in the data. Gross domestic product contracted 4.8% in the first quarter, according to a government report on Wednesday that is expected to look much worse when final revisions are made and is only beginning to show how much damage has been done.
Economists not only expect the Q1 number to end abruptly lower, but they predict a decline in the second quarter worse than anything the United States has seen.
The most recent claims data is presented ahead of the nonfarm payroll report for the next week in April. Federal Reserve Chairman Jerome Powell said Wednesday the unemployment rate is likely to rise above 10% from March’s 4.4% level, which counted a period before the intense ones took effect. social distancing policies.
Nonfarm payrolls for April are expected to show a decrease of 2.25 million, with an unemployment rate of 15.1%, according to preliminary estimates by FactSet.
