U.S. Jobless Claims Fell, But Remain Higher than Pre-Crisis Levels

U.S jobless claims were 900,000 in the week ending January 16, down 26,000 from the previous week and less than expected 935,000, according to the Department of Labor press release. Continuing claims fell by 127,000 to hit 5.05 million, less than the expected 5.3 million in the week ending January 9.

• The 4-week jobless claims moving average was 848,000, an increase of 23,500 from the previous week’s revised average. 
• The 4-week continuing claims moving average was 5,126,250, a decrease of 67,000 from the previous week’s revised average.
• Unadjusted initial claims under state programs were 960,668 in the week ending January 16, a decline of 151,303
• The jobless claims coincide with the monthly employment report, suggesting that the January jobs figures, which will be released on February 5, could show weak payroll gains in the month.
• The jobless claims underlie the resurgent coronavirus’s impact, which has led to more stringent business restrictions.
• Vaccine distribution is expected to restore economic activity in the year, but the slower rollout has limited the speed of job market recovery.
• The $900 billion pandemic aid package approved in December is expected to provide relief for workers and businesses in the current quarter.

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