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U.S. jobless claims tick up a bit

Hiring signs, like this one in Vernon Hills, Ill., earlier this month, has become a common sight. The rebound from the pandemic has left many companies unable to fill jobs to meet a pent-up burst of customer demand.
Number had fallen for most of year

WASHINGTON — The number of Americans applying for unemployment benefits rose last week for the first time since April despite widespread evidence that the economy and the job market are rebounding steadily from the pandemic recession.

The Labor Department said Thursday that jobless claims rose 37,000 from the week before to 412,000. As the job market has strengthened, the number of weekly applications for unemployment aid has fallen for most of the year. The number of jobless claims generally reflects the pace of layoffs.

Weekly applications for unemployment aid had dropped for six straight weeks, and economists had expected another dip last week. Still, the report showed the four-week average of claims, which smooths out week-to-week ups and downs, fell by 8,000 last week to 395,000 — the lowest four-week average since the pandemic hit the economy in March 2020.

For jobless claims to rise slightly “should not be cause for concern yet,’’ said AnnElizabeth Konkel, economist at the Indeed Hiring Lab. “The big picture is that while we are not back to a ‘normal’ level yet of initial claims, they are no longer astronomically high.’’

A year ago, nearly 1.5 million people had applied for unemployment benefits in one week.

With vaccinations up and more consumers venturing out to spend — on restaurant meals, airline fares, movie tickets and store purchases — the economy is rapidly recovering from the recession. All that renewed spending has fueled customer demand and led many companies to seek new workers, often at higher wages, and avoid layoffs.

In May, employers added a less-than-expected 559,000 jobs, evidence that many companies are struggling to find enough workers as the economy recovers faster than expected.

But many economists expect hiring to catch up with demand in the coming months, especially as federal unemployment aid programs end and more people pursue jobs. They note that the economy still has 7.6 million fewer jobs than it did before the pandemic struck.

In April, employers advertised a record 9.3 million job openings, up a sharp 12% from the number in March.

Though jobless claims have tumbled since the start of 2021, when they exceeded 900,000, they remain high by historical standards. Before the pandemic paralyzed the economy in March 2020, unemployment applications were running at about 220,000 a week.

In Thursday’s report, the government said a total of 3.5 million Americans were continuing to collect traditional state unemployment benefits in the week ending June 5.

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