Jobless claims hit new pandemic low

Initial claims for unemployment insurance fell to a new pandemic-era low last week, the Labor Department reported Thursday.

First-time filings for benefits totaled 360,000, in line with Dow Jones estimates and the best number since March 14, 2020.

The total represented a substantial decrease from the previous week’s upwardly revised 386,000.

Continuing claims, which run a week behind the headline number, also fell sharply, declining by 126,000 to 3.24 million. That also established a new low for a jobs market that still has some distance to go before getting back to its pre-Covid 19 self but has made significant strides.

Those collecting benefits under all government programs also fell sharply, dropping by 449,642 to 14.2 million through June 19. That is well above anything seen before the pandemic, but is far below the 33.2 million on the rolls a year ago.

As the labor market recovers, multiple states have ended the enhanced benefits provided since early in the crisis. Federal benefits expire in September, with economists expecting a surge of new workers back into a record level of job openings. Labor force participation is down 2.7% since February 2020, and the total of workers counted as unemployed is more than 3.7 million higher.