Weekly jobless claims increase more than expected to 362,000

Initial jobless claims rose again last week, reaching 362,000, the Labor Department said Thursday, as hiring appeared to remain sluggish as the United States battles the delta variant.

Economists polled by Dow Jones expected 335,000 new deposits, the same number as the previous week’s revised upward total. An increase in claims from California helped explain much of the gains.

The seasonally adjusted total was the highest since 377,000 for the week ended August 7 and indicated that hiring could slow as concerns grow about the pace of the economic recovery and the impact the pandemic could have. have as the fall approaches.

Markets reacted little to the news, with equity futures pointing higher and government bond yields roughly flat.

The four-week moving average of weekly claims, which dampens the volatility of the numbers, edged down to 335,750.

Continuing claims, which are one week behind the weekly headline count, reached 2.84 million, an increase of 131,000. The four-week moving average of continuous claims fell to 2.8 million, or a drop of 15,750 and the lowest since March 14, 2020, the first days of the Covid-19 pandemic.

With the end of improved unemployment benefits, the total number of people enrolled in all programs fell to 11.25 million, a decrease of 856,440. A year ago, 26.6 million people were receiving benefits in the framework of programs developed by the government to fight against the massive layoffs linked to the pandemic.

California recorded 24,221 new claims, according to unadjusted figures. Earlier this month, the state implemented a program in which those who had been denied enhanced assistance could apply for an additional week of benefits.

Virginia also saw a strong increase, with 12,879 new filings. Hurricane-ravaged Louisiana recorded a drop of 7,308 people.

A separate report Thursday showed gross domestic product for the second quarter rose 6.7%, according to the Commerce Department’s third and final reading. This was slightly above the previous estimate of 6.6%, which was also the Dow Jones forecast for the final reading.