2.4.21
The Labor Department reported that the number of workers seeking unemployment benefits fell for the third week in a row. Initial claims were 779,000, down from the previous week’s revised level of 812,000. While these recent data points indicate a stabilization in the number of workers seeking benefits, it is important to note that these levels are well above the pre-pandemic peak of 695,000 and are higher than in any previous recession according to records dating back to 1967. Diane Swonk, chief economist at Grant Thornton, cautioned that “falling weekly claims don’t necessarily signify improvement in the labor market.” She noted that the increased number of workers seeking extended benefits, which rose by 197,000 to 1.7 million in the week ended January 16, “was a sign that the ranks of the long-term unemployed are growing.”