Initial unemployment claims through regular state programs dropped to 444,000 last week, marking a new low level since the pandemic hit in mid-March 2020.
The number of people receiving benefits through state and pandemic-related pandemic programs also declined at the beginning of May to 16 million people from 16.9 million in late April, the Labor Department said Thursday. That includes benefits through one of several programs, including regular state aid and federal emergency programs put in place in response to the pandemic.
U.S. stocks rose Thursday after release of the jobless claims data, putting major indexes on track to snap a three-day losing steak.
Though jobless claims are on a downward trend, April’s job gain of 266,000 fell far short of the one million economists had forecast, fueling concerns among Republicans that enhanced federal unemployment payments were discouraging people from seeking work.
More than three-quarters of Republican-led states plan to end an extra $300-a-week in federal jobless benefits early, likely triggering a further decrease in the number of benefits recipients this summer.
