Last week, Americans continued to hit the unemployment line to a large extent, as the steady rise in Covid cases added to the problem of American unemployment.
Unemployment claims amounted to 900,000 for the week ended Jan. 16, the Labor Department said Thursday. This was slightly lower than the Dow Jones estimate of 925,000 and below the previous week’s revised lower total of 926,000.
Markets reacted little to the news amid continued forecasts that President Joe Biden and Congress will soon lend another major fiscal infusion to help the economy weather the pandemic. Stock futures pointed to a modest gain on Wall Street.
Continued claims showed a slight decrease during the week, falling by 127,000 to 5.05 million.
Weekly claims had been on a downward trend since they erupted in March and April in the early days of the pandemic, but began to rise again in October amid renewed business restrictions.
The hospitality industry has been hardest hit as hotels, bars, restaurants and casinos have been closed or forced to limit guest capacity. In January alone, the industry lost 498,000 workers.
The latest claims report showed that the total number of Americans receiving unemployment benefits continues to decline, although this is mainly due to the fall in pandemic-related programs when 2020 closed.
There were just under 16 million benefit recipients in the most recent data, below 18.4 million. However, the decline in pandemic-related claims will not last as the latest tax package includes extended benefits for displaced workers.
Several large states that have had a heavier hand with restrictions saw the rise in claims from the previous week temper. California (-58,665), New York (-12,212) and Pennsylvania (-9,638) experienced notable declines. The games came from Arizona (15,347) and Illinois (13,948).
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