New jobless claims totaled 326,000 last week—breaking a three-week streak of unexpected increases.
New jobless claims fell for the first time in nearly one month last week, according to new data released Thursday, offering some respite to economists worried the labor market may struggle more than anticipated as the United States recovers from the recent surge in Covid-19 cases.
According to the Labor Department, there are still 8.4 million unemployed people in the United States, markedly higher than the 4 million in February 2020. A number of data points in recent weeks have pointed to ongoing struggles around employment. The labor market its worst monthly showing since January last month, adding back only 235,000 jobs despite forecasts calling for nearly a million additions.
last month, according to Bank of America, while another 3 million people saw their unemployment checks cut by $300 a week—marking the largest cutoff of U.S. unemployment benefits in history.The labor market’s next big data point comes out Friday, when the Bureau of Labor Statistics is slated to report the unemployment rate for September. The unemployment rate clocked in at about 5.2% of the labor market in August, according to the Labor Department’s monthly jobs report, down from 5.
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