New applications for unemployment benefits held near pandemic lows last week while the number of Americans collecting continuing payments fell sharply in late June as many states acted to curtail jobless aid.
Initial unemployment claims, a proxy for layoffs, rose by 2,000 the week ended July 3, from a pandemic low the prior week, to a seasonally adjusted 373,000, the Labor Department said Thursday. The four-week moving average, which smooths out volatility in the weekly figures, was 394,500, the lowest reading since March 2020.
Meanwhile, the number of continuing unemployment payments made through regular state programs fell by 145,000 to the lowest level since March 2020, for the week ended June 26.
Unemployment assistance payments made through pandemic programs fell by nearly a half million for the week ended June 19 as some states ended their participation last month. Continuing claims data is reported on a delay.
“Economic recovery and the associated suspension of supplemental unemployment benefits could incentivize people to take jobs, making the jobless numbers fall further,” said Jason Schenker, president of Prestige Economics.