Weekly unemployment claims are growing less than expected despite the weather effects

Weekly unemployment demands were higher last week, but rose less than expected for an economy struggling with the aftermath of a nearly year-long epidemic.

The Department of Labor on Thursday reported that for the first time since the week ended Feb. 27, filing unemployment insurance for the first time was a seasonally adjusted total of 745,000, touching on Dow Jones ’estimate of 750,000. The aggregate was a slight increase from the previous week’s upward adjustment of 736,000.

Without the Texas seasons, severe winter storms damaged the labor market, resulting in an unadjusted increase of 17,769 for the state. Ohio and New York have also significantly increased their claims.

Ongoing receivables fell again, to just under 4.3 million to 124,000, another pandemic low in a week behind the main number of receivables.

“We expected a significantly larger recovery after the huge winter storm suppressed claims, so this reading suggests that the underlying trend of layoffs is declining due to the reopening currently underway in many states,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

“As always, two good weeks of this shaky series prove nothing, but whatever happens next week, we expect the trend to fall abruptly in the coming months, provided the new Covid versions don’t trigger a spring wave of cases. and, more importantly, hospital care.The jury is still out.

The report is mostly amid positive signs for the U.S. economy.

While economists expected slow growth to begin in 2021 and then accelerate in mid-year, estimates are revised upwards rapidly. The Atlanta Federal Reserve’s GDPNow tracker shows 10% growth in the first quarter.

Nevertheless, labor market order is missing from the bigger picture. Although the unemployment rate fell from a pandemic peak of 14.8% in April last year to 6.3% in January, there are still huge employment gaps.

ADP’s Wednesday report said private rents rose just 117,000 in February, below Dow Jones ’estimate of 225,000. The Department of Labor is expected to report on Friday that non-agricultural payroll accounting has increased by 210,000, although the ADP number poses some adverse risks to that number.

About 10 million unemployed workers remained until February, and the Department of Labor on Thursday reported that more than 18 million had received some form of unemployment benefit by February 13th.

However, this amount has fallen by just over a million, mainly due to a reduction in enrollment in special epidemic programs, which benefits those who are not normally eligible as well as those who have exhausted their regular benefits.

The incentive bill, on which Congress is ready to act, includes new benefits for increased unemployment benefits.