Unemployment claims for the first time continued to have a slight downward trend last week, although the total amount is still above what was considered normal prior to the coronavirus pandemic and slightly higher than the Street estimate. Wall.
The Labor Department reported on Thursday that 751,000 US workers have applied for benefits, compared with 758,000 the week before. Economists surveyed by Dow Jones had expected 741,000. This is the third consecutive week with requests below 800,000 and the four-week moving average dips to 787,000.
The numbers, issued a day before the government̵7;s monthly nonfarm payrolls report, are expected to increase 530,000 by October. Thursday’s unemployment report was not part of the survey week that the Bureau of Statistics. Labor used to calculate monthly figures.
Claims have been trending lower since the end of March peak of 6.9 million but are still up by historical standards. The pre-pandemic peak was 695,000 in October 1982.
Peter Boockvar, chief investment officer at Bleakley Advisory Group, said: “In short, the labor market generally continues to self-repair but the pace of doing so is slowing down.
Requests continued to drop for the sixth straight week, this time reaching 538,000 down to nearly 7.3 million. Part of the reason, however, was the continued migration from people who lost their benefits to the Pandemic Emergency Unemployment Assistance program, which caused the number of workers to increase by 277,564 to 3.96 million. Requests were delayed for a week.
At the same time, the total number of recipients dropped sharply, down 1.15 million to 21.5 million. During the same period in 2019, 1.44 million people were receiving benefits, reflecting how deep unemployment remains in the pandemic era.
The insured unemployment rate, a simple calculation of pensioners relative to the total workforce, fell 0.3 percentage points to 5%. The title unemployment rate, which includes many other factors, is expected to drop to 7.7% from 7.9% in September.
Illinois saw the largest increase in weekly requests, rising 23,200 to 53,138, according to unadjusted data. Kansas, Kentucky, Ohio and Pennsylvania reported increases of more than 3,000. Massachusetts reported the biggest drop at 9,055, while Florida, Georgia and Michigan also reported significant drops.
Markets are less responsive to the news, while Wall Street is ramping up for another strong rally on Thursday.