Jobless Claims Have Eased Along With Other Signs of Slow Recovery
March 04 2021 - 5:59AM
Dow Jones News
By Hannah Lang
Worker filings for jobless benefits have eased since the start
of the year, one of several signs the jobs market is slowly
recovering, as Covid-19 vaccination efforts expand.
Economists surveyed by The Wall Street Journal expect that
750,000 workers filed for unemployment benefits for the week ended
Feb. 27, a slight increase from the prior week and above
pre-pandemic levels.
Weekly jobless claims filings -- a proxy for layoffs -- fell
sharply last week and have trended downward since an early year
peak of over 900,000 at the beginning of January. However, they
remain above the pre-pandemic peak of 695,000.
"We've still got a long ways to go, though it may not seem that
way," Ryan Sweet, an economist at Moody's Analytics, said of the
U.S. labor market. "We've still got a big hole to dig ourselves out
of."
Still, Mr. Sweet said the overall outlook is improving, as virus
cases decline and vaccines are more widely distributed. Some states
are also easing restrictions. New York on Wednesday said it would
ease Covid-19 restrictions on the size of sports and entertainment
gatherings, and Texas on Tuesday said it would end a statewide mask
mandate.
There are several signs the recovery could be picking up after a
winter lull. Economists expect February's employment report, to be
released on Friday, to show modest job gains. A January boost to
household income from the most recent round of government stimulus
indicates the U.S. could be primed for a rapid rebound later this
year, when consumers are expected to spend some of the savings they
accumulated during the pandemic. Hiring is also picking up in some
industries, with the number of help-wanted ads returning to
pre-pandemic levels.
The four-week average, which smooths out volatility in weekly
jobless claims, fell to 807,750 last week, its lowest level since
early December. Two factors that could be affecting the weekly
totals include disruption from winter storms in February and
attempted fraud filings. Ohio, for instance, has adjusted recent
claims totals after suspected fraud created a spike in claims
filings.
Jan Riggins, general manager and regional development
representative at Express Employment Professionals offices in Fort
Worth, Texas, said things have been "a little chaotic" for local
businesses since the winter storms, with some companies scrambling
to regain lost production and others still below normal operating
levels.
Recruiting also slowed while potential job seekers dealt with
burst pipes, school closures and other effects from the storms, Ms.
Riggins said. Though some grocery store shelves are still empty,
businesses are ramping back up. "I think we're definitely going to
see the end of it soon," she said.
Layoffs have persisted despite recent signs of labor-market
improvement, with jobless claims remaining elevated since the
pandemic hit last March.
Best Buy Co. laid off workers and cut hours for some store
employees in recent weeks, as the electronics retailer shifted its
operations to fulfill demand for online orders. United Airlines
Holdings Inc. and American Airlines Group Inc. have told thousands
of workers there could be layoffs next month if lawmakers don't
complete a proposal to extend aid to the airline industry. And
Newport News Shipbuilding, a division of Huntington Ingalls
Industries, in February announced layoffs for 314 workers and
demotions for 119 managers.
Newport News Shipbuilding spokesman Duane Bourne said the
layoffs were part of a broad business reassessment and not pandemic
related. "Reducing our workforce is necessary to control costs and
improve efficiencies to secure the future of our shipyard and the
affordability of the ships we build and maintain for the U.S.
Navy," he said.
Some people are finding work after losing their jobs earlier in
the pandemic. Gabrielle Lencioni, 24 years old, said she recently
accepted a position in the Chicago area as a supply-chain analyst
at a food manufacturing company after losing a job last July at an
oil-and-gas company.
"I didn't think I would be making a pivot so soon, and I ended
up moving into an industry I hadn't even considered when I was in
college," she said. "But because I was open to it and just put the
application out there, it ended up working out."
She filed for unemployment benefits last year, using the money
to cover rent and car payments while looking for work. She said she
applied to about 60 positions, a number she kept track of on a
spreadsheet, and has one friend who applied to more than double
that number.
(END) Dow Jones Newswires
March 04, 2021 05:44 ET (10:44 GMT)
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