The Labor Department said Thursday that initial unemployment insurance claims fell to a new pandemic-era low last week. According to Dow Jones estimates, 360,000 people applied for benefits for the first time, the highest amount since March 14, 2020. The number was down significantly from the upwardly revised 386,000 the previous week. Continuing claims, which are released a week after the headline number, fell by 126,000 to 3.24 million. That also marked a record low for an employment market that has made tremendous progress but still has a long way to go before returning to its pre-Covid 19 state. Following the announcement of the claims data, markets showed minimal reaction, with stock market futures heading lower and government bond yields creeping lower. Through June 19, the number of people receiving benefits from all government programs declined dramatically, falling by 449,642 to 14.2 million. That’s a lot more than before the pandemic, but it’s still a lot less than the 33.2 million who were on the rolls a year ago. As the job market improves, several states have phased down the higher benefits that had been in place since the beginning of the crisis. When federal benefits run out in September, economists expect a surge of new workers to fill a record number of job openings. Since February 2020, labor force participation has decreased by 2.7 percent, and the number of unemployed workers has increased by more than 3.7 million. Manufacturing and job creation in the crucial New York region are booming, according to a separate economic report released on Thursday. The Empire State Manufacturing Survey, conducted by the New York Federal Reserve, hit a new high of 43 in July, indicating a widening gap between enterprises that are expanding and those that are decreasing. New orders and shipments increased sharply, while the employment index rose 8.3 points to 20.6 as 29.5 percent of businesses said they would hire more people. With a reading of 43.9, up 2.2 points from June, a forward-looking indicator on circumstances for the next six months also revealed an increase in hiring. The announcement comes a day after the Federal Reserve’s “Beige Book” report on the state of the economy in the United States. According to the research, the national economy is growing “moderately to robustly,” while the New York region’s economy is rising “at a high pace,” with business contacts “increasingly positive about the near-term prospects.” While New York experienced a surge in growth, the Philadelphia region reported a slowdown on Thursday. The manufacturing reading in that region fell to 21.9 in July from 30.7 the month before, although the headline number still indicated expansion. In both reports, the rate of price rises appeared to be slowing despite otherwise strong inflation numbers. CNBC Pro can help you become a better investor. Get stock recommendations, analyst calls, exclusive interviews, and CNBC TV access. To begin your free trial, simply fill out the form below./n
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