US jobless claims rise again despite signs of recovery
New claims for unemployment benefits in the US rose unexpectedly despite the vaccine rollout and a huge fiscal support driving market recovery.
Initial claims for state unemployment benefits came in at 719,000, according to the Labor Department. Last week claims fell to 684,000, their lowest levels since the start of the pandemic.
While the number of claims remains high the trend is falling as the economy starts to turn a corner. The success of the vaccine rollout is the main driver with close to 3m Americans receiving a dose every day.
A report by Challenger, Gray & Christmas published today reveals job cuts announced by US employers fell 11 per cent to 30,603 last month, the fewest since July 2018.
Layoffs dropped 35 per cent between January and March compared to Q4 2020.
The Biden administration continues to pump money into the economy and sending fresh aid to bsuiensses and householders. Workers claiming unemployment benefits can claim an additional $300 a week to early September.
On Wednesday President Biden unveiled his $2 trillion infrastructure investment plan which will help to rebuild roads, highways and bridges.
He said it was a “once in a generation” investment which would create the “strongest, most resilient, innovative economy in the world”.
All eyes will now be on the government’s non-farm payrolls count for March which will be published tomorrow.
According to a Reuters survey of economists, nonfarm payrolls likely increased by 647,000 jobs last month after rising by 379,000 in February.