Unemployment claims rose slightly, but remained close to a pandemic low last week, a sign that the labor market recovery remains strong despite the uncertainty surrounding the Covid-19 Delta variant.
Unemployment claims rose to 353,000 last week, up from 349,000 reviewed a week earlier, the Labor Department said Thursday. This was the lowest level for claims since the coronavirus arrived in March 2020.
The four-week moving average, which softens the volatility of weekly figures, fell to a new pandemic of 366,500 last week.
Unemployment benefit applications have fallen by more than 50% since the beginning of the year. They have continued to fall this summer, despite the increase in the Delta variant which has led to an increase in Covid-19 cases and hospitalizations across the country.
“Even with the spread of the Delta variant, many vaccinated people feel more comfortable doing things than before,” said Gus Faucher, chief economist at PNC Financial Services Group Inc. “Demand for labor remains very strong.”