from Statista.com
— this post authored by Felix Richter
Initial jobless claims claims dropped to the lowest level since March 2020 last week, signalling the onset of economic recovery. As more and more states ease restrictions in the face of falling case numbers, layoffs cede and more and more workers return to their jobs.
Please share this article – Go to very top of page, right hand side, for social media buttons.
According to the Department of Labor, initial jobless claims dropped to 684,000 in the week ended March 20, marking the lowest level since the onset of the pandemic a year ago. For the past few months, the number of weekly claims had hovered around 800,000, never coming close to returning to pre-pandemic levels. After significant improvements in the labor market following the initial shock in March, the recovery had progressed slower than hoped, as businesses across the United States continued to lay off staff in the face of weak demand and continued restrictions. With case numbers dropping and the vaccine rollout going faster than anticipated, the latest reading signals a new sense of optimism, which is reflected in the labor market.
While the downward trend in initial claims is certainly a positive sign, it only tells half the story. According to the Department of Labor’s latest release, almost 19 million Americans still claimed unemployment insurance benefits in the week ended March 6. The data, which is released with a two-week delay, includes the recently extended Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation. With more than 13 million Americans still relying on those two emergency programs alone, it’s clear that the jobs crisis brought about by the pandemic in March 2020 is still far from over twelve months later.
You will find more infographics at Statista.
.
