Weekly unemployment claims fall to pandemic-low as recovery continues

Weekly jobless claims fell last week to a pandemic low, instilling confidence in the job market’s recovery with the potential of an economic boom on the horizon.

The Department of Labor released its weekly report that said unemployment claims dropped to 576,000, a decrease of 193,000 from the week prior.

It’s the lowest filing since March 14, 2020, which marked the coronavirus pandemic’s start that shuttered businesses around the US.

Jobless claims reached 225,500 at that time, according to the report.

“With a huge, better-than-expected decline in new claims for unemployment assistance, at long last the economic recovery appears to be picking up speed,” Mark Hamrick, senior economic analyst at Bankrate, said on Thursday. “Not only did the headline number of seasonally adjusted initial claims drop beneath the 700,000 level, but it continued on below 600,000 to the lowest since mid-March of 2020.”

Pandemic Unemployed Assistance, a federal program that helps self-employed, independent contractors, “gig workers,” and others who don’t qualify for state benefits also saw a decrease to 131,975 for the week of April 10, a drop from 152,419 set in the previous week.

It’s a steep change from 237,046 claims filed on March 27.

From a state-by-state perspective, California — the country’s highest resident population — posted the biggest change in initial claims filed in the week, with a decrease of 75,645 claims. Claims in Virginia and Ohio fell by more than 20,000, while Kentucky, New York, and New Jersey also showed signs of recovery.

“Coexisting with still elevated levels of job loss is an increasing pace of hiring most notably in leisure and hospitality, which includes restaurants and bars, as well as manufacturing and construction,” Hamrick said.

Spending is up big

Economists predicted a surge of spending could begin under the Biden administration — and early returns point in that direction.

Retail sales rose 9.8% with spending reaching $619.1 billion in March, according to the US Census Bureau. It’s a strong recovery from February, which saw a 2.7% decrease in spending — capping at $562.7 billion, according to revised numbers released in the report.