Initial jobless claims rise for first time in five weeks
Applications for U.S. state unemployment benefits rose for the first time in five weeks, suggesting the labor-market recovery is slowing amid a surging pandemic and fresh business restrictions.
Initial jobless claims in regular state programs totaled 742,000 in the week ended Nov. 14, up 31,000 from the prior week, Labor Department data showed Thursday. On an unadjusted basis, the figure increased by about 18,000. The week included Veterans Day, and claims data tend to be more volatile around holidays.
Continuing claims — the total pool of Americans on ongoing state unemployment benefits _fell 429,000 to 6.37 million in the week ended Nov. 7. The number of Americans claiming extended assistance continued to rise as many unemployed exhausted regular state benefits.
The main figures compared with economists' projections for 700,000 initial claims and 6.4 million continuing claims, based on the median estimates in Bloomberg surveys.
The U.S. labor market is already suffering anew from the record pace of Covid-19 infections, which has spurred a new wave of government restrictions on businesses across the country.
Restaurants are likely to be hit particularly hard by the loss of indoor dining in colder weather, and a lack of fresh stimulus will also weigh on the recovery during the wait for widespread vaccine distribution.
The increase in initial jobless claims was driven by a surge in Louisiana, where filings more than quadrupled from the prior week to 42,724.
Claims also rose in Massachusetts, Texas and Virginia.
Continuing claims for Pandemic Unemployment Assistance, which provides benefits to self-employed and gig workers, decreased by 751,000 to 8.68 million in the week ended Oct. 31.
More people have been rolling onto extended programs like Pandemic Emergency Unemployment Compensation, but these programs will expire by year-end and leave many without government aid. PEUC claims increased about 233,000 to 4.38 million.
A separate report on Thursday showed that momentum in manufacturing continues as a Philadelphia Federal Reserve index topped expectations for November.