US jobless claims fall but remain high
By Michele Maatouk
Date: Wednesday 23 Dec 2020
(Sharecast News) - The number of Americans filing for unemployment benefits fell from a three-month high last week, according to figures released on Wednesday by the Labor Department.
US initial jobless claims declined by 89,000 from the previous week's revised level to 803,000. This marked the first drop in claims since April and was better than analysts' expectations for a level of 885,000. The previous week's level was revised up by 7,000 from 885,000.
For context, before the pandemic hit in March, initial jobless claims tended to be around the low 200,000s.
Meanwhile, the four-week moving average fell by 4,000 from the previous week's revised level to 818,250. The previous week's average was revised up by 1,750.
The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures, giving a more accurate picture of the health of the labour market.
The figures showed that total initial claims - which include pandemic unemployment assistance - fell, but remained elevated, at 1.3 million.
Meanwhile, continuing jobless claims declined to a seasonally-adjusted 5.3m in the week ended 12 December from 5.5m the week before.
Oxford Economics said: "While an easing of the pandemic is in view as the coronavirus vaccine comes online, the health situation is likely to remain dire for a few more months at least, weighing on the labor market and the economy more broadly."
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