US jobless claims hit four-week high in fresh labour setback

[WASHINGTON] Applications for US state unemployment insurance jumped to a four-week high, indicating the labour market is suffering fresh setbacks even as the coronavirus pandemic shows signs of ebbing.

Initial jobless claims in regular state programmes totalled 861,000 in the week ended Feb 13, up 13,000 from the prior week, Labor Department data showed Thursday. Last week's report had originally shown a decrease but was revised up to show a 36,000 increase.

Continuing claims - an approximation of the number of people filing for ongoing state benefits - declined by 64,000 to 4.49 million in the week ended Feb 6.

Continued weeks claimed for the federal pandemic programme that extends the duration of unemployment benefits, known as Pandemic Emergency Unemployment Compensation, fell to 4.06 million in the week ended Jan 30, a level that underscores the current breadth and duration of joblessness.

The latest data suggest the labour market has a tougher road to recovery than previously thought as initial claims have failed to show any sustained decline for five months. While other parts of the economy are near or above pre-pandemic levels, millions of Americans remain out of work and are struggling to pay their bills.

The data correspond with the survey period for the monthly employment figures, and may set the tone for Labor Department's March 5 jobs report.

BLOOMBERG