Unemployment Claims Climb To 719,000 After Hitting Pandemic Low Last Week

Topline

Another 719,000 people filed new claims for regular state unemployment benefits (on a seasonally adjusted basis) last week—up 61,000 from the prior week and significantly more than economists were expecting—as the labor market continues to struggle with the fallout of the coronavirus crisis.

Key Facts

During the week ended March 27, another 237,025 people filed for unemployment under the Pandemic Unemployment Assistance program, which extends benefits to self-employed workers not eligible for traditional state programs.

Unemployment remains incredibly high by historical standards: before the pandemic, the record for new weekly claims was 695,000 during one week in 1982.

Last week, weekly data showed that new claims for regular state unemployment benefits had fallen to their lowest level since the onset of the coronavirus crisis. 

That improvement was driven by an accelerated vaccine rollout as well as the lifting of virus-related restrictions on businesses across the country.

Big Number

18.2 million. That’s how many people are now receiving some form of government unemployment benefit, according to the Labor Department. Jobs data for the month of March will be released on Friday.

What To Watch For

“Vaccines are still the best economic stimulus,” writes Glassdoor senior economist Daniel Zhao. “If accelerating vaccine distribution continues and the economy is able to reopen in the coming months, we may be looking at a strong summer with several months of monthly job gains over 1 million.”

Further Reading

Here’s What’s In Biden’s $2 Trillion Infrastructure Plan (Forbes)

Who Will Be The Biggest Losers From Biden’s Tax Hikes? (Forbes)

The Economy Doesn’t Need The Fed’s Easy Monetary Policy To Keep Booming, BofA Says (Forbes)

Unemployment Claims Fall Sharply To 684,000 As Recovery Gains Steam (Forbes)

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