Please ensure Javascript is enabled for purposes of website accessibility
US Jobless Claims Hit a Pandemic Low as Hiring Strengthens
gvw_ap_news
By Associated Press
Published 4 years ago on
August 19, 2021

Share

WASHINGTON — The number of people seeking unemployment benefits fell last week for a fourth straight time to a pandemic low, the latest sign that America’s job market is rebounding from the pandemic recession as employers boost hiring to meet a surge in consumer demand.

The Labor Department reported Thursday that jobless claims fell by 29,000 to 348,000. The four-week average of claims, which smooths out week-to-week volatility, also fell — by 19,000, to just below 378,000, also a pandemic low.

The weekly pace of applications for unemployment aid has fallen more or less steadily since topping 900,000 in early January. The dwindling number of first-time jobless claims has coincided with the widespread administering of vaccines, which has led businesses to reopen or expand their hours and drawn consumers back to shops, restaurants, airports and entertainment venues.

Still, the number of applications remains high by historic standards: Before the pandemic tore through the economy in March 2020, the weekly pace amounted to around 220,000 a week. And now there is growing concern that the highly contagious delta variant could disrupt the economy’s recovery from last year’s brief but intense recession. Some economists have already begun to mark down their estimates for growth this quarter as some measures of economic activity, like air travel, have started to weaken.

Job Market Rebounding After the Pandemic

Filings for unemployment benefits have traditionally been seen as a real-time measure of the job market’s health. But their reliability has deteriorated during the pandemic. In many states, the weekly figures have been inflated by fraud and by multiple filings from unemployed Americans as they navigate bureaucratic hurdles to try to obtain benefits. Those complications help explain why the pace of applications remains comparatively high.

By all accounts, the job market has been rebounding with vigor since the pandemic paralyzed economic activity last year and employers slashed more than 22 million jobs. The United States has since recovered 16.7 million jobs. And employers have added a rising number of jobs for three straight months, including a robust 943,000 in July. In the meantime, employers have posted a record 10.1 million openings, and many complain that they can’t find enough applicants to fill their open positions.

Last week’s drop in applications for aid was larger than many economists had expected, a sign that the job market’s recovery remains on track for now despite the worries surrounding the spread of the delta variant.

“As life normalizes and the service sector continues to gain momentum (delta variant permitting), we expect initial jobless claims to remain in a downtrend,” Joshua Shapiro, chief U.S. economist at the consulting firm Maria Fiorini Ramirez, said in a research note.

Shapiro added that “this report points to a continued rapid pace of job gains since the July employment data were collected.”

Labor Shortages Still a Major Issue for Employers

Some employers ascribe their labor shortages to supplemental unemployment benefits from the federal government — including $300 a week on top of regular state aid — for discouraging some of the jobless from seeking work. In response, many states have withdrawn from the federal programs, which expire nationwide next month anyway.

Economists point to other factors, too, that have kept some people on the sidelines of the job market. They include difficulty finding or affording child care, fear about becoming infected by the virus at work and the desire of some people to seek better jobs than they had before the pandemic triggered widespread layoffs.

Whatever the causes, the economy remains 5.7 million jobs shy of the number it had in February 2020. And with the U.S. recording an average of more than 100,000 new COVID-19 cases a day — up from fewer than 12,000 in late June — the delta variant is increasingly clouding the outlook for the rest of the year.

Just over 2.8 million people were receiving traditional state jobless benefits in the week of Aug. 7, down by 79,000 from the previous week and the lowest since the pandemic struck.

Including federal benefits, 11.7 million were receiving some type of unemployment benefits in the week of July 31, down from 28.7 million a year earlier. That drop is a result, in part, of the increased number of people working and no longer receiving jobless aid. But it also reflects the cancellation in many states of a federal unemployment aid program for the self-employed and a separate program for the long-term jobless.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Top Justice Department Official Is Now Also Acting Librarian of Congress

DON'T MISS

Trump Tower Damascus? Syria Seeks to Charm US President for Sanctions Relief

DON'T MISS

How Real ID Can Exclude ‘Real’ Americans From Flying, Voting and More

DON'T MISS

Fresno Police Cite 140 During 10-Hour Weekend Operation

DON'T MISS

Trump Plans to Accept Luxury 747 From Qatar to Use as Air Force One

DON'T MISS

What the World Needs From Pope Leo

DON'T MISS

Trump Orders Drugmakers to Cut Prices in 30 Days

DON'T MISS

Pope Leo XIV Urges Release of Imprisoned Journalists, Affirms Gift of Free Speech and Press

DON'T MISS

What to Know About Food Poisoning Illnesses Caused by Listeria

DON'T MISS

Economic Jitters and Soaring Gold Prices Create a Frenzy for US Jewelry Merchants

UP NEXT

S&P 500 Jumps to Over Two-Month High

UP NEXT

US-China Tariff Delay Gives Fed Fresh Reason to Sit Tight on Rates

UP NEXT

US-China Tariff Talks to Continue Sunday, an Official Tells The Associated Press

UP NEXT

Tax the Rich? Slash Spending? Republicans Wrestle With Economic Priorities in the Trump Era

UP NEXT

Tariff Talks Begin Between US and Chinese Officials in Geneva

UP NEXT

Other States Are Showing California How to Protect Its Budget Without Cutting Needed Services

UP NEXT

The Latest: Trump Floats Cutting China Tariffs to 80% Ahead of Weekend Meeting

UP NEXT

Wall Street Drifts as It Waits for a Highly Anticipated US-China Meeting on Trade

UP NEXT

Average US 30-Year Mortgage Rate Steady at 6.76%, Near Highest Levels This Year

UP NEXT

President Trump Announces Trade Deal With Britain

Fresno Police Cite 140 During 10-Hour Weekend Operation

2 hours ago

Trump Plans to Accept Luxury 747 From Qatar to Use as Air Force One

3 hours ago

What the World Needs From Pope Leo

3 hours ago

Trump Orders Drugmakers to Cut Prices in 30 Days

3 hours ago

Pope Leo XIV Urges Release of Imprisoned Journalists, Affirms Gift of Free Speech and Press

3 hours ago

What to Know About Food Poisoning Illnesses Caused by Listeria

3 hours ago

Economic Jitters and Soaring Gold Prices Create a Frenzy for US Jewelry Merchants

3 hours ago

Newsom Urges California Cities and Counties to Ban Homeless Encampments

3 hours ago

Eagles-Chiefs Super Bowl Rematch, Allen-Mahomes Matchup Are Among Biggest 2025 NFL Games

3 hours ago

Warriors, Knicks Will Try to Bounce Back From Home Playoff Losses

3 hours ago

Top Justice Department Official Is Now Also Acting Librarian of Congress

WASHINGTON — The No. 2 official at the Justice Department has also been temporarily put in charge of the Library of Congress, a department o...

47 minutes ago

Todd Blanche responds to a question as he testifies during a Senate Judiciary Committee confirmation hearing on his nomination for deputy attorney general and Abigail Slater for assistant attorney general on Capitol Hill in Washington, Feb. 12, 2025. After firing the head of the Library of Congress, the president put his former personal lawyer, Todd Blanche, in charge of the facility. (Pete Kiehart/The New York Times)
47 minutes ago

Top Justice Department Official Is Now Also Acting Librarian of Congress

A general view shows Damascus from Mount Qasioun, after one month since the ousting of Syria's Bashar al-Assad, in Damascus, Syria, January 7, 2025. REUTERS/Khalil Ashawi/File Photo
1 hour ago

Trump Tower Damascus? Syria Seeks to Charm US President for Sanctions Relief

Non-REAL ID
2 hours ago

How Real ID Can Exclude ‘Real’ Americans From Flying, Voting and More

Photo of the front of Fresno Police Headquarters
2 hours ago

Fresno Police Cite 140 During 10-Hour Weekend Operation

The motorcade of U.S. President Donald Trump is parked next to a 12-year old Qatari-owned Boeing 747-8 that Trump was touring in West Palm Beach, Florida, February 15, 2025. REUTERS/Kevin Lamarque/File Photo
3 hours ago

Trump Plans to Accept Luxury 747 From Qatar to Use as Air Force One

Newly elected Pope Leo XIV, Cardinal Robert Prevost of the United States appears on the balcony of St. Peter's Basilica, at the Vatican, May 8, 2025. (REUTERS/Guglielmo Mangiapane)
3 hours ago

What the World Needs From Pope Leo

President Donald Trump signs an executive order related to drug prices, in the Roosevelt Room of the White House in Washington, Monday, May 12, 2025, in Washington. (AP/Mark Schiefelbein)
3 hours ago

Trump Orders Drugmakers to Cut Prices in 30 Days

Pope Leo XIV meets with members of the international media in the Paul VI Hall at the Vatican, Monday, May 12, 2025. (AP/Domenico Stinellis)
3 hours ago

Pope Leo XIV Urges Release of Imprisoned Journalists, Affirms Gift of Free Speech and Press

Help continue the work that gets you the news that matters most.

Search

Send this to a friend