Initial unemployment claims dropped more than expected to a fresh pandemic-era low last week, with new filings inching back toward pre-pandemic levels as more vaccinated Americans return to work and in-person activities.
The Department of Labor released its weekly report on new jobless claims Thursday and here are the main metrics expected from the report, compared to consensus data compiled by Bloomberg:
Initial jobless claims, week ended May 8: 473,000 vs. 490,000 expected, and an upwardly revised 507,000 during prior week
Continuing claims, week ended May 1: 3.6 million vs. 3.6 million expected, and an upwardly revised 3.7 million during prior week
Weekly jobless claims have nearly halved since the start of 2021 and have fallen precipitously from their pandemic-era high of more than 6 million last year. The last several months’ worth of marked improvements coincided with a fast-ramping vaccination program in the U.S., and widespread easing of social distancing restrictions across many states. Prior to the pandemic, new jobless claims averaged just over 200,000 per week throughout 2019.
“Net, claims fell more than expected last week. Filings are well below 796K, on average, in the first quarter. But the level remains higher than an average 218K in 2019,” Rubeela Farooqi, chief U.S. economist for High Frequency Economics, wrote in an email Thursday morning. “The reopening is continuing, and businesses are less constrained by restrictions. We expect layoffs to ease further as the economy move closer towards normal capacity.”
Click here to read the full report from Emily McCormick at Yahoo Finance.
But improvements in the Labor Department’s weekly jobless claims figures belie some ongoing strain in the labor market, even as more businesses reopen.
