New applications for unemployment benefits likely held near pandemic lows last week, as the labor market continued to heal from the Covid-19 pandemic.
Economists surveyed by The Wall Street Journal estimate the Labor Department will report that initial unemployment claims, a proxy for layoffs, ticked down to 360,000 in the week ended July 10 from a seasonally adjusted 373,000 a week earlier.
Thursday’s report could also shed light on whether the number of people receiving benefits continued to fall. Continuing unemployment payments made through regular state programs—which provides an approximation of the number of people receiving benefits—declined by 145,000 to 3.34 million in the week ended June 26, the lowest level since March 2020.
New claims and benefits payments have trended downward in recent months, largely reflecting a strengthening economy. Still, claims remain elevated compared with the pre-pandemic average of 218,000 in 2019.
“The economy is expanding rapidly now, as Covid infections go down and firms are given the OK to expand in-person activity,” said David Berson, chief economist at Nationwide Mutual Insurance Co. “To meet that demand, firms need to hire workers.”
