New Jobless Claims Below 900,000 For Second Consecutive Week

For the second consecutive week, new jobless claims are below 900,000, dropping 33,000 for the period ending Jan. 30, to 779,000, according to the weekly Department of Labor report released on Thursday (Feb. 4). Last week was the first time numbers dropped below 900,000 in three weeks. 

The previous week’s level was revised down by 35,000 from 847,000 to 812,000. The total number of continued weeks claimed for benefits in all programs for the week ending Jan. 16 was 17.84 million, down 486,405 from the previous week. By way of comparison, during the same week last year, there were 2.10 million weekly claims filed for benefits in all programs.

The latest numbers fell more than forecasts of 830,000, YahooFinance reported. 

Initial jobless claims in regular state programs dropped 33,000 to 779,000 in the week ended Jan. 30, the lowest since November. On an unadjusted basis, applications dropped to 816,247.

“The data continue to signal weakness in the labor market, although a lack of sustained increases in recent weeks is a surprising and positive sign,” Rubeela Farooqi, chief U.S. economist for High Frequency Economics, wrote in a note on Wednesday, per YahooFinance. “As states continue to relax restrictions, claims should stabilize at lower levels.”

Another coronavirus relief package is being discussed in Washington, which would likely extend benefits beyond March. 

The government received 1.17 million applications last week for unemployment benefits, based on actual or unadjusted figures. Combined claims have yet to drop below 1 million a week since last May. Before the pandemic, new claims were running in the low 200,000s and they had never risen by more than 695,000 in any one week, per Marketwatch.

Current unemployment levels are still much higher than the pre-pandemic peak of 695,000 and higher than in any previous recession for records dating to 1967, The Wall Street Journal reported.

As vaccines continue to roll out, economists expect the labor market to improve, providing more support comes from the government. Congress is also considering $1.9 trillion in additional support to help households and businesses. 

Weekly jobless claims filings have been above the pre-pandemic peak of 695,000 since the coronavirus took hold in the U.S. in March 2020.