The U.S. Department of Labor released its weekly new jobless claims report on Thursday, with new jobless claims reaching 744,000 for the week ending April 3rd. Despite signs of increased rehiring and economic recovery, jobless claims have continued to rise since late March.
This result comes as a major surprise to many analysts, particularly since initial projections indicated that 680,000 claims were expected to be filed that particular week (with a revised figure of 728,000). The number of continuing claims also exceeded expectations, with a figure of 3.734 million overshadowing the estimated total of 3.638 million.
While jobless claims have followed a downward trend since the start of the coronavirus pandemic, they remain historically steep and continue to exceed the record 665,000 new claims filed at the worst point of the Great Recession in March 2009.
Despite the persistently high unemployment figures, there is still a shared optimism among experts for an economic upturn. JPMorgan economist Bruce Kasman stated the following in a recent note: “Initial claims did jump in the latest weekly report, but the four-week moving average for regular state filings hit its lowest level in over a year.”
While jobless claims continue to rise, the March jobs report actually validified optimists’ views regarding economic recovery. The report showed a tally of 916,000 payrolls being brought back.
