Initial jobless claims reach pandemic low

Analyst says turn could be a sign of continued improvement to come

The number of workers filing first-time claims for unemployment benefits fell to 684,000 last week, the lowest since the start of the pandemic back in March 2020. The U.S. Labor Department reported that the total for the week ending March 20 was 97,000 fewer than the previous week’s 781,000 filings, a figure that was revised upward by 11,000 from the 770,000 initially reported.

In New York, 41,501 workers filed first-time claims in the week ending March 20, 5,788 fewer than the previous week’s 47,289.

In his weekly commentary, Bankrate.com senior market analyst Mark Hamrick said the improvement could be a sign of a turnaround.

“For the first time since the pandemic began, new claims for jobless benefits have dropped below the 700,000 level,” he wrote. “This is likely a sign of even better things to come for the nation’s battered economy and the millions of individuals who are jobless, underemployed or have left the workforce but would like to work.”

Despite the improvement, 19 million workers are still receiving some form of unemployment benefit, a number that’s barely budged over recent weeks.

But another round of stimulus checks began arriving more than a week ago, providing some relief to millions of consumers.

Other signs of improvement include a rebound in travel as more people are vaccinated and an increase in hiring as businesses reopen.

But Hamrick cautioned that the Federal Reserve might act if it sees inflation becoming an issue.

“There’s a chance the central bank could begin taking its foot off the gas sooner rather than later if it appears the economy has achieved a continuing and strong liftoff amid sustained price pressures,” he wrote.