Nine claims for U.S. unemployment benefits rose unexpectedly above 400,000 last week from a pandemic-era low, even as the labor market improves as vaccines increase and blockade measures ease.
The rate of unemployment claims filed for regular state programs increased from 37,000 in the week ending June 12 to 412,000, the U.S. Department of Labor said Thursday. It was the first growth since April and missed expectations for a drop to 359,000 new claims, according to a survey by Reuters economists.
Pennsylvania and California reported the largest increase in jobless benefits last week, according to preliminary figures.
The report also showed an increase of 46,722 in pandemic unemployment assistance claims – which provide benefits for employees and workers – to 118,025.
Unemployment benefits related to the pandemic are set to expire on Sept. 6, and more than two dozen states have said they will end some or all of the increased benefits before Republican policymakers claim the benefits discourage people from looking for work.
Chairman of the Federal Reserve Jay Powell on Wednesday he set an optimistic tone about the pace of job creation.
“There is every reason to think that we will be in a labor market with very attractive numbers, with low unemployment, high participation and rising wages across the spectrum,” he said at a press conference.
Labor market conditions are expected to continue to improve as the U.S. moves forward with the reopening, with California, the most populous state in the United States, and New York both lifting most of their coronavirus restrictions this week.
While the median of Fed officials ’estimates continued to show the fall in unemployment to 4.5 percent this year, they now signal GDP growth of 7 percent, compared to 6.5 percent. one hundred before.
About 14.8 million Americans continue to seek unemployment benefits more than a year after the pandemic began.
According to the data, Treasury yields fell slightly, with the U.S. 10-year yield falling from 0.007 percentage points to 1.563 percent. Meanwhile, stock futures have cut their losses with the S&P 500 futures down 0.3 percent.