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Thursday, May 20, 2021

Initial Jobless Claims

Workers filing for new unemployment benefits fell to a new pandemic-era low in the latest week, hitting their lowest levels in more than a year as the labor market continued to heal from the worst days of the COVID-19 outbreak. 

The Department of Labor released its weekly report on new jobless claims Thursday at 8:30 a.m. ET. Here were the main metrics expected from the report, compared to consensus data compiled by Bloomberg:

Initial jobless claims, week ended May 15: 444,000 vs. 450,000 expected and an upwardly revised 478,000 during prior week

Continuing claims, week ended May 8: 3.751 million vs. 3.62 million expected and 3.655 million during prior week

Thursday's data was the lowest level for initial claims since March 2020, when the data checked in at 256,000, according to Labor Department data. Since the beginning of the year, weekly jobless claims have tumbled by nearly half, and have fallen precipitously from their pandemic-era peak of more than 6 million last year. 

Steady improvement over the last several months — amplified by the COVID-19 mass vaccination effort and the relaxation of lockdowns across the country, have created more positions while sparking an increasingly acute labor shortage. 

Companies have had to hike wages in order to entice badly needed workers as demand surges, stoking a furious debate over supplemental unemployment benefits that critics contend have become a barrier to hiring.

Source: Yahoo News

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