US jobless claims rise to 770,000 with layoffs still high

FAN Editor

The number of Americans seeking unemployment benefits rose last week to 770,000, a sign that layoffs remain high even as much of the U.S. economy is steadily recovering from the coronavirus recession

WASHINGTON — The number of Americans seeking unemployment benefits rose last week to 770,000, a sign that layoffs remain high even as much of the U.S. economy is steadily recovering from the coronavirus recession.

Thursday’s report from the Labor Department showed that jobless claims climbed from 725,000 the week before. The numbers have dropped sharply since the depths of the recession last spring but still show that employers in some industries continue to lay off workers. Before the pandemic struck, applications for unemployment aid had never topped 700,000 in any one week.

The four-week average of claims, which smooths out weekly variations, dropped to 746,000, the lowest since late November.

The continuing layoffs are occurring even as the overall job market has shown solid improvement. Last month, U.S. employers added a robust 379,000 jobs, the most since October and a sign that the economy is strengthening as consumers spend more and states and cities ease business restrictions.

With vaccinations accelerating, hopes are rising that Americans will increasingly travel, shop, eat out and spend freely after a year of virus-induced restraint.

Yet the nation is still 9.5 million short of the number of jobs it had in February 2020. And Federal Reserve Chair Jerome Powell suggested Wednesday after the Fed’s latest policy meeting that the overall economic outlook remained cloudy.

“The state of the economy in two or three years is highly uncertain,” Powell said at a news conference after the Fed signaled that it expects to keep its key interest rate near zero through 2023 despite some solid economic gains and concerns about rising inflation pressures.

By most barometers, business activity in the economy’s vast and hard-hit service sector is still far from normal. The data firm Womply said, for example, that as of early last week 63% of movie theaters, galleries and other entertainment venues were closed. So were 39% of bars, 32% of gyms and other sports and recreation businesses and 30% of restaurants.

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