Weekly jobless claims higher than expected, labor market takes hit from rising Covid cases

The tempo of first-time filings for jobless claims picked up final week, with the roles market exhibiting rising vulnerability to the coronavirus unfold.

Claims totaled 778,000 for the week ended Nov. 21, forward of the 733,000 expectation from economists surveyed by Dow Jones and up from 742,000 the earlier week.

Continuing claims for these gathering advantages for not less than two weeks continued their decline, falling to six.07 million, a decline of 299,000.

The information comes amid an ongoing rise in coronavirus cases and worries that the nationwide well being system is changing into burdened. New day by day cases have averaged 174,225 over the previous week, and well being officers fear that Thanksgiving might ship that stage higher as households throughout the nation journey to rejoice the vacation.

Though weekly claims have been beneath 800,000 for the previous six weeks, they’re nonetheless properly above the pre-pandemic report as governments impose restrictions on exercise. The hospitality trade has been notably hard-hit with restrictions on capability and the chance that many must return to take-out solely operations or shut fully as winter settles in and cases proceed to extend.

Many displaced employees have been seeing their advantages expire.

Enrollment within the Pandemic Unemployment Assistance program, which gives advantages to these not usually eligible, decreased by 8,019 over the previous week to 311,675. However, these on the PUA emergency program, which helps those that have misplaced their advantages with 13 extra weeks of compensation, surged by 466,106 to 9.15 million, although that information is 2 weeks behind.

The complete receiving advantages rose to twenty.45 million for the week ended Nov. 7, up 135,297 from the week earlier than. That compares to simply beneath 1.5 million a yr in the past, underscoring how a lot harm stays within the labor market.

The jobless claims numbers have been launched a day earlier than traditional because of the vacation.

The day’s information displays a two-speed recovery the place the roles market continues to battle however different elements of the financial system are performing properly.

Durable items orders rose a better-than-expected 1.3%, properly above the 0.6% Dow Jones estimate, whereas the Commerce Department confirmed that gross home product rebounded at a 33.1% annualized tempo within the third quarter. The GDP studying was the second of three and matched the preliminary estimate.

“This is one of the strangest recoveries from recession in history,” wrote Chris Rupkey, chief monetary economist at MUFG Union Bank. “Companies are clearly not cash-strapped and are planning for a stronger economy next year as they continue to order up new long-lived capital goods equipment to meet the demand for their goods and services. Corporations don’t see uncertainty and don’t even know there was a recession.”


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