The New Normal: US jobless claims ticked up to 373,000 last week from a pandemic low

The number of Americans filing for unemployment benefits rose slightly last week even while the economy and the job market appear to be rebounding from the coronavirus recession with sustained energy.

Associated Press

Jul 8, 2021, 1:54 PM

Updated 1,114 days ago

Share:

The number of Americans filing for unemployment benefits rose slightly last week even while the economy and the job market appear to be rebounding from the coronavirus recession with sustained energy.
Thursday's report from the Labor Department showed that jobless claims increased by 2,000 from the previous week to 373,000. Weekly applications, which generally track the pace of layoffs, have fallen steadily this year from more than 900,000 at the start of the year. The four-week average of applications, which smooths out week-to-week volatility, is now 394,500 - the lowest such level since the pandemic erupted in March of last year.
The rollout of vaccinations is driving a potent economic recovery as businesses reopen, employers struggle to fill jobs and consumers emerge from months of lockdown to travel, shop and spend at restaurants, bars, retailers and entertainment venues.
In the first three months of the year, the government has estimated that the economy expanded at a brisk 6.4% annual rate. In the April-June quarter, the annual rate is thought to have reached a sizzling 10%. And for all of 2021, the Congressional Budget Office has projected that growth will amount to 6.7%. That would be the fastest calendar-year expansion since 1984.
The economy is recovering so quickly that many companies can't find workers fast enough to meet their increased customer demand. On Wednesday, the government said that U.S. employers posted 9.21 million jobs in May, the most since record-keeping began in 2000.
And in June, employers added a strong 850,000 jobs, and hourly pay rose a solid 3.6% compared with a year ago - faster than the pre-pandemic annual pace and a sign that companies are being compelled to pay more to attract and keep workers.
Still, the nation remains 6.8 million jobs short of the level it had in February 2020, just before the coronavirus pandemic tore through the economy and eliminated tens of millions of jobs. And weekly applications for unemployment benefits, though down sharply from earlier peaks, are still comparatively high: Before the pandemic, they were typically coming in at only around 220,000 a week.
The total number of Americans receiving jobless aid, including supplemental federal checks that were intended to provide relief during the pandemic recession, amounted to 14.2 million people during the week of June 19, down from 33.2 million a year earlier.
Many states, though, have dropped the federal aid, responding to complaints that the generous benefits were discouraging some of the unemployed from seeking work: A total of 26 states plan to end the $300-a-week federal benefit before it ends nationally on Sept. 6. Most of those states will also cut off federal assistance to the self-employed, gig workers and people who have been out of work for more than six months.
Still, many factors other than the enhanced federal jobless benefits are thought to have contributed to the shortage of people seeking work again: Difficulty arranging or affording child care, lingering fears of COVID-19, early retirements by older workers, a slowdown in immigration and a decision by some people to seek new careers rather than return to their old jobs.
“We see weekly filings declining over coming weeks as job growth picks up, although at least some of the improvement will be due to states suspending federal support measures,'' Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said in a research note.


More from News 12
2:10
Boar’s Head deli meat recalled for potential listeria contamination

Boar’s Head deli meat recalled for potential listeria contamination

2:16
Fire at Fair Lawn strip mall destroys multiple businesses, including popular Zadies Bakery

Fire at Fair Lawn strip mall destroys multiple businesses, including popular Zadies Bakery

2:42
Beautiful weekend ahead for New Jersey with sunny skies and warm temperatures

Beautiful weekend ahead for New Jersey with sunny skies and warm temperatures

1:43
Lead found on Keyport beach not ‘urgent risk’ to public health, no need to close beach

Lead found on Keyport beach not ‘urgent risk’ to public health, no need to close beach

0:29
Man who pleaded guilty to attacking Jewish men sentenced to 30 years on terror charges

Man who pleaded guilty to attacking Jewish men sentenced to 30 years on terror charges

1:01
‘It’s a beautiful sport.’ New pickleball courts open in Howell Township

‘It’s a beautiful sport.’ New pickleball courts open in Howell Township

0:55
EPA completes Phase 1 of superfund site cleanup at Unimatic Manufacturing site in Fairfield

EPA completes Phase 1 of superfund site cleanup at Unimatic Manufacturing site in Fairfield

0:20
West New York school named for Sen. Menendez to revert to original name

West New York school named for Sen. Menendez to revert to original name

0:30
Attorney general: NJ state trooper ‘inexcusably crossed the line,’ admits to punching handcuffed woman in the face in 2022

Attorney general: NJ state trooper ‘inexcusably crossed the line,’ admits to punching handcuffed woman in the face in 2022

0:15
East Brunswick police: Bicyclist killed in Route 18 crash

East Brunswick police: Bicyclist killed in Route 18 crash

0:30
No one injured in Kenilworth house fire

No one injured in Kenilworth house fire

1:04
Attorney general releases body camera footage of fatal Hamilton police-involved shooting

Attorney general releases body camera footage of fatal Hamilton police-involved shooting

0:15
Part of Manchester’s Harry Wright Lake closed due to high levels of fecal bacteria

Part of Manchester’s Harry Wright Lake closed due to high levels of fecal bacteria

0:23
2 dead in Maine plane crash after leaving New Jersey airport

2 dead in Maine plane crash after leaving New Jersey airport

0:18
$1 million lottery ticket won from $20 scratch-off at North Wildwood Wawa

$1 million lottery ticket won from $20 scratch-off at North Wildwood Wawa

1:59
Paws & Pals: Felicity now up for adoption at Associated Humane Societies

Paws & Pals: Felicity now up for adoption at Associated Humane Societies

1:17
Gov. Murphy discusses potential Menendez replacement on ‘Ask Gov. Murphy’

Gov. Murphy discusses potential Menendez replacement on ‘Ask Gov. Murphy’

0:40
State, federal lawmakers introduce legislation to shorten funding gap for World Trade Center Health Program

State, federal lawmakers introduce legislation to shorten funding gap for World Trade Center Health Program

0:33
New Jersey now has 21 towns where starter homes cost more than $1 million

New Jersey now has 21 towns where starter homes cost more than $1 million

0:48
Jersey Proud: Dean Martin & Jerry Lewis first performed together 78 years ago in Atlantic City

Jersey Proud: Dean Martin & Jerry Lewis first performed together 78 years ago in Atlantic City