After a pandemic-induced increase in redundancies amid new restrictions in many countries, the demands for unemployment are declining, helped by a decrease in new cases of coronavirus.
Initial claims for unemployment benefits declined last week, the Labor Department reported on Thursday and were significantly below the level for most of December and early January.
New cases of coronavirus have dropped by a third from the level of two weeks ago, encouraging countries like California and New York to relax porches for indoor dining and other activities. This in turn gave a respite to workers in the industries that were hit the hardest.
Last week, 813,000 brought new claims for government benefits, compared to 850,000 the previous week. Adjusted for seasonal variations, the figure was 793,000 last week, a decrease of 19,000.
There were 335,000 new claims for Pandemic Unemployment Assistance, a federally funded program for part-time workers, the self-employed, and others who are not normally eligible for unemployment benefits. The total, which is not seasonally adjusted, decreased from 369,000 the previous week.
While claims by historical standards remain extraordinarily high, the improvement has raised hopes that layoffs will be delayed as vaccinations spread and employers turn off workers after their addition.
“We are holding on to this very high level of demands, but activity is increasing,” said Julia Pollak, a labor economist at ZipRecruiter, an online employment market. Indeed, positions at ZipRecruiter stand at 11.3 million, close to the level of 11.4 million before the pandemic.
The improved pandemic situation has eased tensions at restaurants and bars, Ms. Pollak added. But with a shortage of nearly 10 million jobs since the pandemic, and employers still cautious about hiring, the economy faces major challenges.
Federal Reserve Chairman Jerome H. Powell told the New York Economic Club on Wednesday that policymakers should stay focused on recovering full-time jobs, “given the number of people who have lost their jobs and the likelihood that some will struggle to to get a job. in the outstanding economy. ”
He noted that employment fell by only 4 per cent for workers earning high wages, but a staggering 17 per cent for the bottom quartile of earners.
There are many other signs of weakness. According to the Labor Department, employers added just 49,000 jobs in January, highlighting the challenges for the unemployed.
President Biden cites the poor performance to push for approval of a $ 1.9 billion package relief package. That would send $ 1,400 to many Americans, help states and cities, and extend the mid-March unemployment benefits for millions.
The House Ways and Means Committee took a first step on Wednesday when it began work on promoting a measure that would extend emergency benefits until the end of August and increase a weekly benefit supplement to $ 400 from $ 300.
With the prospect of additional relief and a decrease in virus cases, some experts believe that a strong setback is possible this year. Oxford Economics predicts that the economy will grow by 5.9 percent in 2021, compared to a contraction of 3.5 percent last year.
According to economists from ZipRecruiter and another major online workplace, Indeed, employers are already taking the welcome out in certain fields.
Pollak said employers have been posting at ZipRecruiter in recent days, offering hope. “We have seen employers crush all our expectations and show a lot of exuberance,” she said. “There are clear differences between different industries.”
Apart from the strength in industries that benefit from the stay-at-home trend, such as warehouses and deliveries, the hiring of technology and professional and business services has recently shown a sign of life.
“Businesses are looking to the future and are somewhat optimistic,” she said. Pollak said.
AnnElizabeth Konkel, an economist at the Indeed Hiring Lab, added that the demand for pharmacists increased by 23 percent from a year ago, while managers’ openings increased by 18 percent. “It’s all directly related to the pandemic,” she said. Konkel said.
Nevertheless, there were regional differences. In cities where many people work remotely, such as Washington, Seattle, Boston, and San Francisco, there were fewer placements in some fields than in places with more office workers.
“People do not come to their local coffee shop on the way to work or stop in a shop to pick up something when they work from home,” Konkel said, and this affects rent.
The openings at restaurants are less than a year ago, she added, as well as positions in arts and entertainment, hospitality and tourism.
At ZipRecruiter, the energy industry increased its mail spending after heavy losses early in the pandemic. Manufacturing has also recorded more openings recently.
“Some of the losers are finally coming back a little bit,” she said. Pollak said. “But so many industries cannot possibly be resumed while the pandemic is going on.”