The economists were hoping for 360,000 new unemployment claims that week
The U.S. Labor Bureau said Thursday that Jobless’s claims came out against expectations last week as the U.S. job market is recovering.
The first demand for unemployment insurance reached 412,000, an increase of 37,000 from the previous week. This is the highest number recorded since May 15th.
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CNBC reported that the economists are hoping for 360,000 new claims that week.
This rise comes almost entirely from Pennsylvania and California, which saw new claims of 21,590 and 15,712, respectively.
The news brings attention to the fact that the US economy is not recovering completely and that the job market has not returned to that level before the pandemic. At that point, the claims were just above 200,000 a week.
Federal Reserve Chairman Jerome Powell, at a press conference on Wednesday, naturally offered optimistic outlook for the US job market. Powell said the recovery was being curbed by labor supply but should recover fully as the economy continues to reopen.
Powell added that many factors are playing to protect Americans from their jobs. This includes skills inconsistencies, concerns about Covid-19 and childcare.
“It’s clear that we are on a path to a very strong labor market and I think I’m sure,” Powell said. “We’ll hope that strong job creation will be built over the summer and that autumn will enter the world.”
