Top-line initial claims for unemployment benefits increased to 770,000 versus an expected decline to 700,000 for the week ending March 13, according to government data released Thursday.
This is the 52nd consecutive week of elevated jobless claims. The scars in the labor market will take time to heal.
There were 282,394 new claims for federal Pandemic Unemployment Assistance, and were 4.12 million continuing claims for the week ending March 6. The total number of people filing for unemployment benefits declined to 18.2 million for the week ending Feb. 27, down from 20.1 million previously.
This data underscores why the Federal Reserve has maintained that while an economic recovery may be underway, there are major challenges beneath the surface that require an accommodative monetary policy.
This is the 52nd week of significant increases in newly filed jobless claims – an anniversary of sorts. One year ago, for the week ending March 14, initial claims for unemployment benefits jumped from 200,000 to 251,000. That was considered an extraordinary event. Also a year ago, there were 2 million people receiving regular state unemployment benefits. Now, through Feb. 27, there are 4.5 million.
But by the next week last year, state employment agencies were processing 2.9 million initial jobless claims and then 6.0 million the following week. Yet those numbers still understated the level of labor market distress as state agencies struggled with a backlog of applicants that would continue for months.
One year later, there have been more than 81 million first-time filings for jobless benefits, at an average more than 700,000 per week. There are still anywhere from18 million and 20 million people who are filing for unemployment benefits in any given week. Last year, that number stood at 2.087 million.
This is evidence of the long-term scarring in the labor sector that, despite what is going to be a booming economy over the next two to three years, will not be repaired anytime soon and requires sustained policy attention.
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