Workers’ filings for new unemployment benefits likely resumed their decline last week and remain near a pandemic low as the labor market continued to recover from the crisis, economists said.
Economists surveyed by The Wall Street Journal estimated that initial jobless claims for the week ended July 24 dropped to 380,000 from 419,000 the week before. From early May to July 17, filings for benefits have dropped by more than 17%, though they remain elevated from their pre-pandemic level. The four-week moving average, which smooths out volatility in the weekly figures, was slightly above its pandemic low last week.
The labor market and overall economy are expected to continue recovering from a sharp downturn earlier in the pandemic. Economists cite uncertainty from the Delta variant of Covid-19, continuing supply-chain constraints and a shortage of available workers as factors to watch regarding the outlook.
“I do expect to see job growth pick up, but I’m not sure how and when these issues are going to be resolved and how households are going to respond,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.
Employers added 850,000 jobs in June, the most in 10 months, and workers’ wages increased. The number of people receiving jobless benefits has declined.
