US jobless claims rise to 419,000 from a pandemic low
WASHINGTON (AP) — The number of Americans seeking unemployment benefits rose last week from the lowest point of the pandemic, even as the job market appears to be rebounding on the strength of a reopened economy.
The Labor Department said Thursday that jobless claims increased last week to 419,000, the most in two months, from 368,000 the previous week. The number of first-time applications, which generally tracks layoffs, has fallen steadily since topping 900,000 in early January.
Economists characterized last week’s increase as most likely a blip caused by some one-time factors and partly a result of the inevitable bumpiness in the week-to-week data. Applications for jobless aid jumped last week, for example, in Michigan, where GM has announced that it’s shutting down truck production because of supply shortages.
“I do not worry that this reading signals a sudden weakening in labor demand,” said Stephen Stanley, an economist at Amherst Pierpont Securities. “In fact, I am quite confident that it does not.”
Americans are shopping, traveling and eating out more as the pandemic has waned, boosting the economy and forcing businesses to scramble for more workers. Companies have posted the highest number of available jobs in the two decades that the data has been tracked. Hiring has picked up, though businesses say they often can’t find enough employees at the wages they’re willing to pay.
At the same time, analysts are becoming concerned about the potential economic consequences of a tick-up in confirmed viral infections as the highly contagious delta variant spreads, especially among the unvaccinated. The seven-day rolling U.S. average for daily new cases accelerated over the past two weeks to more than 37,000 as of Tuesday, from fewer than 13,700, according to data from Johns Hopkins University.