Number of americans The Labor Department recorded unemployment claims for the first time, dropping to 712,000 last week.
For the week ending March 6, the number was 42,000 from the revised level of 754,000 the previous week.
Political cartoon on economy
The four-week moving average was 759,000, a decrease of 34,000 from the previous week’s revised average. The average for the previous week was revised from 2,250 to 790,750 to 793,000.
This figure exceeded expectations of 725,000 and was consistent with indications that, as vaccines become more widely administered and loosen state restrictions such as Texas and Utah, the service sector of the economy will improve and recruitment will increase. . The economy added 379,000 jobs in February and a large part was in the leisure and hospitality industries.
Snagajob, which tracks weekly workers hired by working hours, said on Wednesday that while total jobs increase 37% month over month and 54% year-over-year, hospitality jobs increase 112%. Increased month and 67% year over year.
“With new COVID cases significantly reduced, vaccinations continued, and states like Texas” reopened, “we expect job growth to accelerate in the next few months,” said Matthew Stevenson, CEO of Snegajob said. In fact, 88% of businesses that traditionally hire for summer planning this year. “
However, Stevenson says that this year there may be a delay in the summer working pattern, taking place in May and June instead of April and May as is usually the case. “Specifically, we expect strong growth in restaurant jobs where there is significant punch-up consumer demand, while growth in hospitality will be compounded by the expectation that business travel will take longer to return to pre-epidemic levels . “
While employment is an important component of the health of the economy, other readings clearly show the economy rebounding sharply from a year earlier, when it saw the fastest decline since World War II as a result of coronoviruses. Most economists are raising their forecasts for 2021, forecasting strong consumer spending and return of business investment.
Wells Fargo senior economist Sam Bullard said Wednesday that the firm released its latest monthly forecast that “as long as the hole remains deep, the labor market is making significant progress. We expect the unemployment rate to end this year around 4.7%” Are looking for. ” It currently sits at 6.2%.
The firm is raising its 2021 forecast for the economy. “Reflecting the ongoing reform on the COVID front, the economic performance will be stronger than expected and more than expected economic relief package, we forecast our forecast for full-year GDP growth of 6.4% in 2021 and 2022 And 5.7% (from 6.2% and 5.1% respectively).
The economy will receive a critical shot in the arm from the $ 1.9 trillion coronavirus relief bill that the House passed on Wednesday and President Joe Biden is expected to do soon on Friday. This includes a lump sum payment of $ 1,400, $ 350 billion for state and local governments, and other provisions designed to accelerate the deployment of vaccines and tackle childhood poverty.
Comerica chief economist Robert Dye said on Wednesday, “Q1’s consumer spending has received some support in anticipation of additional fiscal stimulus, but will see most of the economic impact of the $ 1.9 trillion package.” “We expect this to be the last major fiscal stimulus package directly related to the COVID epidemic in the US. We also expect a significant infrastructure spending bill to be introduced soon. Expenditure likely over several years Will span and may include support for Amkk and. Other rail projects. “