First-Time Jobless Claims Fell to the Lowest Level

The labor market in the world’s largest economy was thriving before the Covid-pandemic. However, the pandemic had a huge impact on the country’s labor market. Analysts are monitoring the data published by the Labor Department to learn more about the situation. First-time jobless claims were little changed over the previous week according to the Labor Department. 

It is worth mentioning that initial filings for the week ended November 13, totalled 268,000, a decline of 1,000 from a week ago. First-time jobless claims dropped to the lowest point since the beginning of the pandemic. 

The four-week moving average, which smooths out weekly volatility fell to 272,750 slightly above the total for the most recent weekly count. Continuing claims, which run a week behind the headline number, dropped by 129,000 to 2.08 million.

The labor market is recovering and fewer and fewer people need financial support from the government. Nonetheless, trailing numbers for those receiving benefits under all programs increased sharply for data through October 30. The number of people who receive benefits rose by 618,804 to 3.185 million.

Millions of people across the country benefited from special pandemic-related emergency programs. But emergency programs ended in September. Still, the total for the Pandemic Unemployment Assistance program, in particular, increased from October 23 to October 30, rising to 537,467. The Labor Department did not provide an explanation regarding the big surge in pandemic-related filings.

A separate report from the Labor Department brought some strong news for manufacturing as well as more signs of inflation. 

The Philadelphia Federal Reserve’s gauge of monthly activity in the sector rose 15 points and reached 39. Notably, that result was well above the Dow Jones estimate for 23, triggered by increases in employment and prices paid and received. 

Jobless claims and Covid 19 pandemic

First-time jobless claims declined to the lowest level in a long time, but the pandemic is not over yet. Austria made the decision to reimpose a full lockdown. On November 18, the country recorded more than 15,000 new cases of Covid-19. The country’s government is working hard to stabilize the situation across the country. 

The country will enter a fourth national lockdown on Monday. It became the first country in Western Europe to introduce stringent measures this fall. The country’s Chancellor Alexander Schallenberg also announced on Friday that Covid vaccination would become mandatory in Austria from February 1.

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