US New Jobless Claims at 847,000

The Department of Labor released its weekly report on new jobless claims which showed that jobless fell by 67,000 to a seasonally adjusted 847,000 which is still at an all-time high since the COVID-19 pandemic began.

Dow Jones and The Wall Street Journal had initially forecasted initial jobless claims to total 875,000.

There are currently 4.8 million Americans that are continuing to receive traditional state unemployment benefits which is only a fraction of the nearly 25 million figures recorded in May during the pandemic peak.

JPMorgan Chase economist Daniel Silver explained that the numbers could be attributed to a weakening job market “that is likely tied to an intensification of COVID-19 issues over the past couple of months.”

Another factor would be Martin Luther King. Jr. holiday because people who lost their jobs wait until the week after a holiday to file claims.

Since February 2020, the United States has lost 9.8 million jobs, including 140,000 in December as a result of the pandemic.

Before the pandemic, jobless claims never went above 695,000 in one week.

Despite the high jobless claims, Americans collecting state jobless benefits declined by 203,000 to a seasonally adjusted 4.77 million.

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