The Department of Labor reported that last-week showed first-time claims for unemployment rose at levels much higher than initially anticipated, especially due to the fact that the economy has been showing signs of recovering after the last year.
According to reports from the Labor Department “first-time claims for the week ended April 3 totaled 744,000, well above the expectation for 694,000 from economists surveyed by Dow Jones. The total represented an increase of 16,000 from the previous week’s upwardly revised 728,000. The four-week moving average edged higher to 723,750.”
The labor market within the last week, however, has shown signs of recovery after the past year of the pandemic. Nonfarm payrolls in march increased by nearly 916,000 while the unemployment rate fell down to 6%.
This increase in jobs marks the biggest increase in employment in the US since August 2020. Before the pandemic the unemployment rate was at 3.5%, however, so there’s still plenty of work to be done, especially after last week’s unexpected reports.
“Continuing claims provided some good news on the labor front, with the total dropping 16,000 to 3.73 million. That’s the lowest level for continuing claims since March 21, 2020, just after the Covid-19 pandemic hit and companies instituted wholesale layoffs in conjunction with the economic shutdown. Continuing claims run a week behind the headline weekly number,” according to NBC.
California and New York account for a majority of the increase in employment; California saw a rise of 38,963 last week while New York saw a 15,714 increase. However, those increases were cancelled out by a 13,944 decline in Alabama as well as a 10,502 decline in Ohio.
Economists have reported that filing backlogs could be one of the larger factors that drive claims up throughout the nation, while spikes in Covid-19 cases are also keeping the filings elevated due to a lack of individuals able to work.
Federal Reserve officials claim that despite the recent progress America has experienced, “much more progress is needed on the jobs front before we can consider changing economic policy.” The most recent Federal Open Market Committee meeting cited a better outlook for the US economy in the coming year based on a continued need for an easy policy.
Federal Governor Lael Brainard told the media this week that “the economic outlook has brightened considerably but there are still about 9 million fewer workers than there were before the pandemic. Central bank officials have said they want to see not only full employment but also inclusive gains across income, racial and gender lines. In that sense, we’ve got some distance to go before the outcomes are achieved.”
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at firstname.lastname@example.org.