Unemployment Claims Drop To New Low But Pandemic ‘Healing’ Is Still Needed

The number of Americans filing for initial unemployment claims declined to a new pandemic-era low as employers looking for eligible job candidates spike across the U.S., according to the latest report from the Labor Department released on Thursday.

For the week ending Aug. 14, initial unemployment claims dropped 29,000 from the previous week to 348,000 – the lowest level since March 14, 2020. Claims hit below the Dow Jones estimate of 365,000, according to CNBC.

“Some much needed good news is found in jobless claims with fresh pandemic lows notched both for new and continuing claims,” Mark Hamrick, senior economic analyst at Bankrate, said in an email.

“On the headline number, it was the fourth straight weekly decline coming in a bit better than expected. We’re mindful that while fresh job loss is not the major drag on the economy, unemployment can be heartbreaking and devastating for individuals and households. Pointing to continuing challenges, some 11.7 million Americans were receiving some form of unemployment assistance as of the latest snapshot. This is a reminder of further healing that’s still needed.”

The previous week’s jobless claims were revised up 2,000 to 377,000 for a four-week moving average of 377,750. That number is down 19,000 from the prior week’s revised average – another low since March 14, 2020.

The insured unemployment rate now sits at 2.1% for the week ending Aug. 7, which is unchanged from the previous week.

Total unemployment insurance claims for the week ending Aug. 7 were 2,820,000 – a drop of 79,000 from a week earlier. This marked the lowest level of insured unemployment since March 14, 2020, when claims were 1,770,000.

The biggest movers of the week came from Puerto Rico, California, Illinois, and the District of Colombia, which all reported the highest insured employment rate for the week ending July 31.

The biggest increases in initial unemployment claims for the week ending Aug. 7 were in Virginia, California, Maryland, and Oregon, while the largest decrease in initial jobless claims came in Michigan, New York, Georgia, and Indiana.