Initial claims were little changed in the week ending Jan. 2. Smoothing through the holiday volatility, however, the upward trend over the past month shows COVID cases and restrictions are weighing on the jobs market.
Initial Filings for Regular Benefits Tick Down
In the first week in which beneficiaries would be eligible to receive an extra $300 per week, initial jobless claims ticked down slightly to 787K (SA). While claims around the holiday season are fraught with noise, the four-week average has moved higher over the past month as renewed restrictions and voluntary efforts to contain the virus weigh on the jobs market. We look for payrolls to decline in tomorrow’s December report.
More Help Coming for 19.2M Beneficiaries
Claims for the PUA, which covers gig and self-employed workers, fell to the lowest level since the program’s inception. But, it was set to expire before the latest COVID relief deal extended it at the last minute, which may have held down filings last week.
Pandemic program extensions and the $300 top-up should provide a meaningful boost to the most cash-strapped households in the next few months, with 19.2M individuals collecting benefits.
