By Hannah Lang
Filings for unemployment benefits in the latter half of February
reached their lowest level in nearly three months amid signs of
slow labor-market improvement.
The Labor Department said jobless claims, a proxy for layoffs,
rose slightly to 745,000 for the week ended Feb. 27, from a revised
736,000 the prior week. The four week moving-average, which smooths
out week-to-week volatility in claims numbers, was just under
800,000, its lowest level since early December.
Despite the easing, worker filings for jobless benefits have
remained elevated since the pandemic hit last March, holding above
a pre-pandemic peak of 695,000.
"We're almost getting used to these high numbers," said
AnnElizabeth Konkel, an economist at jobs site Indeed. "The only
thing that's going to fix it is getting the public health situation
under control."
Still, Ms. Konkel said the overall outlook could improve 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.
Economists expect February's employment report -- the
government's broadest look at the U.S. labor market -- to show
modest job gains when it is released on Friday. 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.
"We do think the $1.9 trillion will be a boost to the economy in
terms of jobs created," S&P Chief Economist Beth Ann Bovino
said during a WSJ Jobs Summit on Thursday, referring to the latest
stimulus package that is pending in the Senate.
"It's been a slow recovery, but we do seem to have turned the
corner," Ms. Bovino said.
The total number of continuing claims -- which offers a good
approximation of the number of workers collecting benefits -- was
about 4.3 million in regular state programs for the week ending
Feb. 20, down slightly from the prior week. The number of
continuing claims for pandemic unemployment assistance -- which
provides benefits to gig workers, the self-employed and others not
typically eligible for unemployment aid -- fell to 7.3 million for
the week ending Feb. 13 from 7.5 million the week prior.
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. For the
week ended Feb. 27, the state reported approximately 119,000
claims, or about 16% of the nationwide total on an unadjusted
basis. Ohio didn't immediately respond to a request for comment
about its claims figures.
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 13:36 ET (18:36 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.