The number of people claiming unemployment benefits for the first time fell unexpectedly last week, marking the second consecutive decline.
Initial unemployment claims fell by 19,000 to 787,000 in the week ending December 26, the Labor Department said on Thursday. Economists surveyed by the Dow Jones expected initial unemployment claims to rise to 828,000. The previous week’s total for initial applications was revised upwards by 3,000 to 806,000.
To be sure, the four-week moving average for first-time applicants rose by 17,750 to 836,750, indicating that the labor market is still under pressure as the coronavirus pandemic flares up.
“There is no real improvement in the data,” John Ryding, an economic adviser at Brean Capital, told CNBC’s “Squawk Box.” “What we are seeing is a very difficult time in the economy, with the detection of the virus we have seen and the slow launch of vaccination.”
The United States records at least 181,998 new cases of coronavirus each day, based on a seven-day average calculated by CNBC using data from Johns Hopkins University. The Covid hospitalization rate in the country also increased, exceeding 125,000 for the first time.
U.S. lawmakers recently approved a $ 900 billion Covid incentive package that includes direct payments of $ 600 to most Americans. This week, the House passed a measure that would increase those payments to $ 2,000, but the Senate blocked it.
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