WASHINGTON (Reuters) Fewer Americans sought unemployment benefits last week, but the modest drop did little to dispel concerns that the U.S. job market and wider economy face an arduous recovery from the devastation inflicted by the coronavirus pandemic in 2020.
The final major economic data point for a year that saw a recession of historic magnitude erupt out of nowhere stood as a fitting reminder for both how far the recovery has progressed and how much more it has to go.
While new claims for benefits reported by the U.S. Labor Department on Thursday dropped for the second week in a row to a seasonally adjusted 787,000 in the week ended Dec. 26 from 806,000 a week before, it left them at roughly the level they were three months ago and with little indication they would show material improvement any time soon.
U S jobless claims dip but show recovery has long way to go
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US layoffs still high as 803K seek aid – The Manila Times
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The US Labor Department on Thursday reported that weekly jobless claims increased by 853,000 last week, beating Dow Jones estimates, according to CNBC.
This number was up from the 716,000 seen the week prior. It also indicated the highest number since Sept. 19, reflecting ongoing economic challenges in the job market. Additionally, continuing unemployment claims increased by 230,000 to 5.76 million, the first time that number has increased since late August, the article said.
“This recent surge suggests that claims are not just stagnating, they’re actively worsening,” Daniel Zhao, a senior economist at Glassdoor, told CNBC. “The surge in initial claims is especially concerning when claims are still above levels near the peak of the Great Recession.”