The first claims for unemployment insurance rose to 965,000 last week amid signs of a slowdown due to epidemic restrictions, the Labor Department said on Thursday.
The aggregation was worse than Wall Street’s estimate of 800,000 and exceeds 784,000 the previous week.
Markets have reacted little to the number as the downturn in economic activity is expected to be driven by more stimulus from Washington. President-elect Joe Biden will announce hopes later on Thursday for another package that is likely to exceed $ 1 trillion.
Futures prices continued to signal Wall Street’s fragmentation gains.
Nevertheless, the number of unemployed for the week ending 9 January was another sign of economic turmoil caused by restrictions on action to combat the pandemic. The cumulative amount was the highest since the week of August 22, when just over 1 million claims were filed.
Ongoing receivables were also higher, rising from 199,000 to 5.27 million. That number is a week behind the amount of weekly damage and has risen for the first time since late November.
The number of recipients of government benefits has fallen sharply despite the increase in weekly headcount. This level dropped to 18.4 million from 19.2 million the previous week. The data is two weeks behind the total amount of weekly damages. The decrease was mainly due to a decrease in the number of applicants for emergency epidemics, although it is well above the 2.18 million who received benefits a year earlier.
The increase in claims is spread over a handful of states, especially those with stricter restrictions on businesses.
In Illinois, where Chicago captured restaurants, unadjusted data showed a jump of 51,280. Another big gain was California, which doesn’t even allow for outdoor dining, and the number of claims increased by 20,587, an increase of 13%. New York rose 15,559.
However, many states with relatively loose constraints have also seen noticeable gains. Florida’s claims more than doubled to 50,747, while Texas rose 14,282.
Recently, there are signs that job gains, which began in May, are starting to cool.
In December, nonfarm payroll declined for the first time during the recovery from the Covid market lows, falling by 140,000, while the unemployment rate stood at 6.7%.
The Federal Reserve said on Wednesday that business relations in the 12 districts of the central bank have reported declining employment and difficulty filling positions. Economists generally see the 2021 economy as starting slowly, but gaining momentum as the year progresses and the Covid-19 vaccine spreads.