First-time unemployment insurance claims last week fell below 1 million for the first time since March 21, suggesting that the labor market is continuing to recover from the coronavirus pandemic.
The total claims of 963,000 for the week ending August 8th were well below the 1.1 million estimate by economists polled by Dow Jones. This corresponds to a decrease of 228,000 compared to the previous week.
Unemployment claims exceeded 1
While reading below 1 million is a milestone, there is still a lot to be done to get the job market back to normal. Those who received what is known as ongoing entitlements for at least two weeks stood at nearly 15.5 million, down from 604,000 from a week earlier but still well above pre-pandemic levels.
Markets have cut losses following the report and Wall Street is now pointing to an open stock.
The total number of Americans on unemployment benefits fell sharply for the week ended July 25, declining more than 3 million to 28.26 million, also indicating a downward trend in unemployment. A year ago it was 1.7 million.
Those receiving benefits under the Pandemic Unemployment Assistance program were 488,622, down from 167,377 from a week earlier. The program provides compensation to those who are normally not entitled to benefits such as: B. Independent contractors.
At the state level, the largest falls in claims came from Florida (-23,180), New York (-21,905), and Texas (-11,233), with the numbers not being seasonally adjusted. The unadjusted total was 831,856, down from 156,453. Some economists say the unadjusted number is more relevant because the current circumstances of the pandemic are not subject to seasonality.
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