Weekly jobless claims edged higher last week but rose less than expected for an economy struggling to shake off impacts from a pandemic that has been around now for nearly a year.
The Labor Department reported first-time filings for unemployment insurance in the week ended Feb. 27 totaled a seasonally adjusted 745,000, a touch below the Dow Jones estimate of 750,000. The total was a slight uptick from the previous week’s upwardly revised 736,000.
Unseasonably harsh winter storms in Texas took a tool on the labor market, resulting in an increase of 17,769 filings for the state, according to unadjusted data. Ohio and New York also saw considerable increases in claims.
Continuing claims again decreased, falling 124,000 to just below 4.3 million, another pandemic-era low.
The report comes amid mostly positive signs for the U.S. economy.
Whereas economists had been expecting slow growth to start 2021 followed by an acceleration in mid-year, estimates are being revised upward rapidly. The Atlanta Federal Reserve’s GDPNow tracker is pointing to 10% growth in the first quarter.
Still, fixing the jobs market has been the missing element in the broader picture. Though the unemployment rate has tumbled from a pandemic-era high of 14.8% in April 2020 to 6.3% in January, there are still huge gaps in employment.
A report Wednesday from ADP showed private hiring increased by just 117,000 in February, below the Dow Jones estimate of 225,000. The Labor Department is expected to report Friday that nonfarm payrolls grew by 210,000, though the ADP number adds some downside risk to that number.
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