Americans continued to hit the unemployment line in droves last week as the continued rise in Covid cases further exacerbated the US unemployment problem.
Unemployment claims totaled 900,000 for the week ending Jan. 16, the Labor Ministry reported Thursday. That was slightly less than the Dow Jones’ estimate of 925,000 and lower than last week’s down-revised total of 926,000.
Markets responded little to the news amid persistent expectations that President Joe Biden and Congress will soon be giving another major fiscal infusion to help the economy get through the pandemic. Stock futures pointed to a modest gain on Wall Street.
Persistent claims were slightly down for the week, falling 127,000 to 5.05 million.
Weekly claims were lower since the March and April blast in the early days of the pandemic, but started to decline higher in October amid renewed business restrictions.
The hospitality industry has been hit hardest as hotels, bars, restaurants and casinos are either closed or capacity for guests is limited. In January alone, the industry lost 498,000 workers.
The latest claims report showed that the total of Americans receiving unemployment benefits continues to decline, albeit largely due to a drop in the number of pandemic-related programs towards the end of 2020.
In the most recent data, there were just under 16 million benefit recipients, against 18.4 million. The decline in pandemic-related claims will not last, however, as the latest tax package includes comprehensive benefits for displaced workers.
Several major states that have taken a tougher hand with restrictions have seen the rise in claims dampened over the past week. California (-58,665), New York (-12,212), and Pennsylvania (-9,638) all saw significant declines. Games came from Arizona (15,347) and Illinois (13,948).
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