Jobless claims rise over 2 million

More than 2.1 million unemployed Americans applied for state unemployment benefits in the week ended May 23, the Labor Department said Thursday. That’s down from 2.4 million in the prior week.

It is the 10th straight week of claims over 2 million Economists surveyed by MarketWatch had been looking for 2.12 million new claims. A new federal relief program for so-called “gig” workers like Uber drivers, totaled 1.2 million last week.

The number of people already collecting economic benefits, known as continuing claims fell 3.86 million to 21.05 million. That’s down from a record 24.9 million in the prior week. These claims are reported with a one-week lag.

What happened: Since the coronavirus pandemic and lockdowns started in mid-March, some 46 million people have applied for jobless claims, on an unadjusted basis. Claims have fallen steadily since hitting a record 6.9 million in the week ended March 28.

The drop in continuing claims show that some unemployed workers are finding work.
Big picture: The unemployment rate shot up 14.7% in April and is expected to rise further in May. The key is whether these job losses are temporary or permanent.

What are they saying? “The decline in continuing claims is encouraging, signaling at least some people are finding jobs or are being rehired as the economy is reopening. Even so, labor market conditions remain weak and layoffs are ongoing. We think new protocols related to virus containment will continue to restrict activity and layoffs, though they may continue to moderate, will remain high in the near term,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.