Weekly unemployment claims rose this week, one sign that the economy isn’t back to normal just yet.
First-time jobless claims amounted to over 351,000 this week, which is up 16,000 from the week before. Analysts expected 320,000. The number of continuing claims (people who are already collecting unemployment) is up 181,000 to 2.84 million.
Yesterday, Federal Reserve Chairman Jerome Powell indicated that the Fed wants to see more progress with employment before raising interest rates or beginning robust tapering. 🤷
Throughout the pandemic, initial and continuing claims have been in decline. However, over the last few months, these numbers have remained relatively stable, suggesting the employment recovery is all but over.
The number of people claiming unemployment benefits is expected to fall in coming days and weeks as enhanced unemployment benefits end. According to Bank of America, over seven million people are expected to lose enhanced unemployment completely; three million more will lose supplemental income ($300/week) on top of their paychecks.