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 after a slew of worrisome data points indicating the labor market may struggle more than anticipated as the United States recovers from the pandemic.About 326,000 people filed initial jobless claims in the week ending October 2, according to the weeklyEconomists were expecting about 345,000 new claims, according to Bloomberg.
In another promising sign, the number of continued claims also fell to about 4.2 million, from about 5 million last week, but the number of Americans receiving benefits is still roughly twice as much as pre-pandemic levels. In a Thursday morning note, Mark Hamrick, a senior economic analyst at Bankrate, pointed out initial claims"finally" ticked down after three straight weekly increases, though he notes they’re still above a pandemic low of 312,000 in the week ending September 4.
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. “The expected path forward for the job market and the broader economy is considered to be fairly upbeat, but a higher-than-normal degree of uncertainty remains,” says Hamrick.
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