New Florida and U.S. jobless assistance applications plummet as vaccine campaigns take effect

New applications for unemployment assistance in Florida and the U.S. plummeted last week, the U.S. Department of Labor said Thursday, as vaccine campaigns and reopening measures in the Sunshine State and nationwide took effect.

For the week ending March 20, new jobless claims in Florida fell from 20,340 to 13,892 — the lowest level reached since the pandemic began one year ago, though still double the average weekly rate seen prior to the crisis.

Nationwide, new claims fell from 781,000 to 684,000 — a decrease of 97,000 and also a pandemic low.

Economists have cautioned that the labor market remains far from healed. In Florida, the number of continuing jobless claims, or those who have filed for unemployment for at least two consecutive weeks, fell from 135,291 to 111,552 last week; prior to the pandemic, that category averaged about 33,000 a week.

“We welcome this progress, but will not lose sight of the millions of Americans who are still hurting, including lowerwage workers in the services sector, African Americans, Hispanics, and other minority groups that have been especially hard hit,” Federal Reserve Chairman Jay Powell said in prepared remarks during a House Financial Service Committee hearing Tuesday.

Ian Shepherdson, chief economist at research group Pantheon Macroeconomics, said in a note to clients following Thursday morning’s release that even the new pandemic low of 684,000 new jobless claims is still higher than the peak seen during the Great Recession.

“We’re guessing that each week sees some firms either downsizing further or throwing in the towel, unable to hang on until the economy reopens,” he said.

Florida’s Department of Economic Opportunity will release state employment data for February on Friday.