Weekly employment claims are sharply higher than last week, but the economy has struggled to recover from the effects of the nearly year-long epidemic.
The Labor Department reported filings for unemployment insurance for the first time in the week ended Feb. 27, with a seasonally adjusted 745,000, below the Dow Jones estimate of 750,000. There was a slight increase in total compared to last week’s revised ward size of 6,6,000.
Inadvertent severe winter storms in Texas gained traction in the labor market, resulting in an increase of 1,17,76969 filings for the state, according to unconfirmed data. Ohio and New York also saw a significant increase in claims.
Continuing claims fell again, dropping from 124,000 to just 4.3 million, another low level of the disease.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said: “We expect a large return after the severe winter hurricane has pushed the claim, so this reading suggests that the underlying trend in layoffs is declining. Said chief economist Ian Shepherdson.
“As always, however, the two good weeks in this volatile series prove nothing, but whatever happens next week, we expect the trend to decline rapidly over the next few months, if the new Covid variants do not stimulate the spring wave. , Most importantly, hospitalized. The jury is still out, “he added.
The report comes amid mostly positive signs for the American economy.
While economists were expecting slower growth to begin in 2021, there has been an accelerated, upward revision in the middle of the year. The Atlanta Federal Reserve’s GDP tracker is pointing to 10% growth in the first quarter.
Still, improving the job market is a missing element in the broader picture. Nevertheless, the unemployment rate fell from the high point of the epidemic period in April 2020, but fell to 6.3% in January, although there are still large gaps in employment.
Private rent rose by just 117,000 in February, below the Dow Jones estimate of 225,000, an ADP report said Wednesday. The Labor Department is expected to report on Friday that nonfarm payrolls have risen to 210,000, although the number of ADPs in that number is slightly negative.
There are about 10 million unemployed workers left in the month of February, and a report from the Department of Labor on Thursday indicated that more than 18 million people receive some form of unemployment compensation.
However, there has been a total reduction of more than one million, especially in registrations for special programs related to epidemics that provide benefits to those who do not normally qualify as well as those who have paid off their regular benefits.
A stimulus bill that Congress is willing to work on has a new allocation for the benefit of the unemployed.
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