The number of first-time filers for unemployment benefits last week was slightly higher than expected as the sluggish recovery from the coronavirus epidemic in the labor market continues.
The Labor Department reported Thursday that Sept. Initial job claims for the week ending on the 19th came in at 870,000. Economists surveyed by the Dow Jones expected first-time claims to come in at 850,000, down slightly from the 860,000 claims recorded last week.
“Bottom line, we have a mix of people going back to work because they are now more motivated to do so without the extra 600 600 a week and those who are still challenged to find a job that matches their expertise in this unfortunate epidemic landscape. Is, “said Peter Bookover, chief investment officer at Blackle Advisory Group.
Initial claims showed an increase in the biggest weekend of the week in New York and Georgia, the department said. Last week, New York saw a surge of more than 1,000 claims, and Georgia saw a surge of more than 1,000,000 first-time filers.
Thursday’s data comes as U.S. lawmakers struggle to move forward with a new monetary stimulus package, something economists and the Federal Reserve argue is needed to continue economic recovery.
On Wednesday, Fed Chairman Jerome Powell called for more funding, telling lawmakers: “We’ve come a long way, and that’s great. But there’s still a long way to go. So I’ll just say we need to stay with it.” “All of us. With the support of both the Congress and the Fed, the recovery will move forward quickly.”
U.S. Stock futures increase their previous losses after the data is released. Dow Jones Industrial Average futures traded up 175 points, or 0.7%.
“Currently, the claims, important high-frequency data points, have missed expectations and are moving forward,” said Dennis Debuchyre, an analyst at Evercore ISI, in a note. Weak data will have a big impact on risk assets. “
Continuing claims, including those that have benefited from unemployment for at least two straight weeks, fell 177,000 to 16.88 million in the week ended Sept. 6.
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