It was down from the previous week and slightly better than economists had predicted. Yet claims were still three and a half times higher than in the same period last year. Overall, unemployment claims remain well above historical standards, suggesting ongoing pain in the labor market during the coronavirus pandemic.
According to Nancy Vanden Houten, American economist at Oxford Economics, the holidays and uncertainty about renewal of benefits in the new year may have held back the claims last week.
In addition to regular unemployment claims, a further 308,262 workers have applied for assistance under the Pandemic Unemployment Assistance Program, which provides benefits to people who are not eligible for regular state aid, such as the self-employed and handy workers.
Collectively, 1.1 million Americans filed for unemployment benefits first, unadjusted for seasonal fluctuations.
“While the decline in total initial claims is a move in the right direction, they have not fallen below a million since the start of the crisis,” said Indeed Hiring Lab economist AnnElizabeth Konkel in email response.
Meanwhile, 5.2 million workers filed an ongoing application, for their second week or more of the state’s regular unemployment benefits, in the week ending December 19. December 12, which provides benefits when employees have exhausted their state benefits.
A total of 19.6 million Americans filed for some form of ongoing unemployment benefits in the week ending December 12.
Ten months after the pandemic, millions of workers still depend on government payments to make ends meet after losing their lives in the crisis. For those lucky enough to be back at work, reduced hours and wages are also a concern.
“While the outlook for the economy later in 2021 is positive, the economy and the labor market will have to navigate some difficult terrain between now and then, and we expect claims to remain high,” Vanden Houten wrote in a note to customers.