Unemployment claims hit new pandemic low, New York manufacturing hits record high – .

Unemployment claims hit new pandemic low, New York manufacturing hits record high – .

Initial unemployment insurance claims fell to a new pandemic-era low last week, the Labor Department reported on Thursday.
The first claims for benefits totaled 360,000, in line with Dow Jones estimates and the best number since March 14, 2020.

The total was a substantial drop from the 386,000 revised upward the previous week.

Continuing claims, which are a week behind the overall number, also fell sharply, falling from 126,000 to 3.24 million. It also set a new low for a labor market that still has a way to go before returning to its pre-Covid 19 state but has made significant progress.
Markets reacted little to the news of the claims, with stock market futures pointing lower and government bond yields falling slightly after the release.
Those receiving benefits under all government programs also fell sharply, falling from 449,642 million to 14.2 million through June 19. That’s way above anything seen before the pandemic, but well below the 33.2 million registered a year ago.
As the labor market recovers, several states have ended the improved benefits provided since the onset of the crisis. Federal benefits expire in September, with economists expecting a wave of new workers to reach a record level of job vacancies. Labor force participation is down 2.7% since February 2020, and the total number of workers counted as unemployed is more than 3.7 million higher.

New York industry growing at record pace

A separate economic report on Thursday showed manufacturing and hiring is booming in the New York City hub.

The Empire State Manufacturing Survey, conducted by the Federal Reserve of New York, hit a record 43 for July, which is the percentage difference between expanding and contracting companies.

New orders and shipments surged, while the employment index rose 8.3 points to 20.6 as 29.5% of businesses said they would add workers. A forward-looking index on conditions over the next six months also showed an increase in hires, with a reading of 43.9, up 2.2 points from June.

The news comes a day after the publication of the Fed’s “Beige Book” on economic conditions across the country. This report showed “moderate to robust growth” nationally, while the New York area reported an economy growing “at a steady pace” as business contacts were “increasingly optimistic about the economy. short-term prospects ”.

While New York City reported an explosion in growth, the Philadelphia area on Thursday said progress was slowing.

The region’s manufacturing reading slipped to 21.9 in July from 30.7 the month before, although the overall figure still points to expansion.

Both reports also indicated some deceleration in the rate of price increase in an environment of otherwise high inflation.

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