Surprising rise in unemployment claims

Surprising rise in unemployment claims

After a few weeks when the number continuously reached post-pandemic lows, the jobless claims jumped unexpectedly last week

According to the Department of Labor’s latest report, in the past week, 412,000 people filed for the first time for unemployment benefits. It marks the highest number since May 15. The market was looking for 360,000 filings.

The increase in unemployment claims comes following a series of steps taken towards normalcy in the payrolls picture. However, employment had improved as vaccination progressed, and cases, hospitalizations and deaths have fallen considerably.

Jerome Powell, Chairman of Federal Reserve: “factors related to the pandemic, such as caregiving needs, ongoing fears of the virus, and unemployment insurance payments appear to be weighing on employment growth.” Nevertheless, a record of 9.3 million jobs is available and waiting to be filled.

Sources: cnbc.com, forexfactory.com

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