Weekly Jobless Claims on the Rise Again, at 745,000
The weekly number of unemployment claims increased yet again, reflecting both economists’ expectations for the week and a continued sluggish recovery.
For the week ending Feb. 27, the weekly number of new unemployment claims rose to 745,000, according to the Labor Department. Economists expected 750,000 new unemployment claims, according to CNBC.
This new figure also represents an increase from last week’s revised level. The previous week was revised to 736,000 from 730,000 new claims.
To put these figures in context, pre-pandemic, first-time unemployment benefit filers had typically numbered only about 225,000 weekly. For example, for the week ending Feb. 29, 2020, the figure stood at 217,000 claims, according to Labor Department data.
Earlier this week, the February ADP National Employment Report showed that private sector employment increased by 117,000 jobs from January to February, and while the numbers are encouraging, they fell short of expectations.
“The labor market continues to post a sluggish recovery across the board,” Nela Richardson, ADP chief economist, said in a statement. “We’re seeing large-sized companies increasingly feeling the effects of COVID-19, while job growth in the goods producing sector pauses. With the pandemic still in the driver’s seat, the service sector remains well below its pre-pandemic levels; however, this sector is one that will likely benefit the most over time with reopenings and increased consumer confidence.”
More from GOBankingRates