US states tend to see the fewest new unemployment claims since March 2020 last week. The number of preliminary filings is expected to decline for the sixth week in a row. due to improved economic activity
The Department of Labor will release a weekly report on new jobless claims on Thursday at 8:30 a.m. ET. Here are the key metrics to expect from the report. Compared to consensus data gathered by Bloomberg:
Applying for unemployment benefits for the first time Week ended June 5 Expected 370,000 and 385,000 last week.
ongoing claims Week ending May 22: expected 3.650 million and 3.771million last week
Economists expect new filings to fall below the 400,000 psychological priority level for the past week. And approaching a pre-epidemic average of more than 200,000 per week, jobless claims have also set new lows in each pandemic era for five consecutive weeks. with a downward trend coupled with increased demand for labor during the recovery.
Despite falling new unemployment claims But the number of people still claiming unemployment benefits continues to rise. This has raised concerns about widespread labor shortages.
The Bureau of Labor Statistics said earlier this week that vacancies in April jumped to a record level of more than 9 million. A separate survey found a record share of small business owners reported failing to fill open jobs. received in May During the week ending May 15, the total number of Americans claiming benefits from the unemployment program was 15.4 million, down about 366,000 from the previous week.
especially The number of Americans claiming benefits through the Federal Unemployment Assistance Program (PUA) and the Epidemic Emergency Unemployment Compensation Program (PEUC) is particularly high. About 11.7 million people claimed these projects in the week ending May 15, or roughly unchanged from the week before.
About two dozen states are ending federal pandemic benefits early on or before the nation’s Sept. 6 expiration date. A few of these states — including Alaska, Iowa, Mississippi and Missouri — are ending. Some or all of these projects immediately. end of this week Government officials hope to incentivize Americans to return to work in the event of rising unemployment benefits.
However, not all economists agree that ending these projects early. May help stimulate the job search to meet the goals. Due to the many factors that prevented some individuals from being in the labor force in the past year
“There is a confluence of factors. that affect the employee’s decision to return or not to return to work It appears that substantial unemployment benefits are unlikely to be factored more than other barriers, including childcare, transportation and health issues, Morgan Stanley economist Sarah Wolfe wrote in a note published today. On June 4, “Although state-level data in the following weeks going to be important But most importantly, eliminating the negative impact of unemployment benefits on labor market recovery is not an easy task, and there are many factors that affect returning to work.”
This post will be updated with the results of the Labor Department’s weekly unemployment claim report on Thursday at 8:30 AM ET. Check back for updates.
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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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