Number: About 326,000 people who recently lost their jobs applied for unemployment benefits in early October, marking the first fall in a month and pointing to further improvement in the U.S. labor market.
In the seven days ending October 2, the number of new unemployment claims, traditionally granted to states, fell by 1,000,000, from 4,000 the previous week, the government said Thursday.
Economists surveyed by The Wall Street Journal estimated that new claims would drop to 345,000, including a season-two.
Prior to the recent collapse, new applications for unemployment benefits have risen three weeks in a row, raising questions about whether the Delta variant has forced more businesses to lay off workers.
Yet most of the growth took place in California and suggested that the problems were not widespread. The rest of the states have flattened or reduced applications for unemployment benefits in the past month.
The number of people who have already availed state unemployment benefits has dropped to a whopping 2.71 million. These so-called continued claims are less than epidemic.
In all, as of September 1, about 1.1 million people were receiving unemployment benefits through separate state or federal programs.
It dropped sharply to 11.3 million at the start of the month, largely due to the end of a temporary federal program to help the unemployed.
Read: The Fed is betting on the future of low inflation. What could be wrong here
Larger image: The number of people applying for unemployment benefits has not yet returned to pre-epidemic levels in less than 200,000 years. But with record job openings and most companies trying to recruit, the layoffs are expected to continue.
The biggest problem in the U.S. job market right now is the reluctance of millions of people to return to work. The return of children to school and the end of additional federal benefits are expected to encourage many more to return to work in the near future.
The key U.S. employment report for September, released Friday, could shed light on whether more people are returning to the workforce. Wall Street economists predict that employment will more than double from just 255,000 new jobs created in August to about 50,000.
Read: Half of all small businesses do not find enough staff to fill open jobs
Original details: New unemployment claims fall the most in California, where they have fallen by more than 10,000 based on unjust numbers. In the past month, a geyser in the Golden State has been responsible for the rise in overall U.S. unemployment claims.
Working through a large backlog of California applications. It also hit the delta.
Another 37 states received new unemployment claims last week.
About 1 for the benefit of the unemployed. Millions of applications were filed through the federal program, which ended in the first week of September. Some of those claims probably reflect a few weeks of missed work before the federal program expires, but it’s not clear how many will be paid.
The federal program provides additional benefits to all unemployed workers, including millions of self-employed who have never been eligible for compensation in the past.
Market Response: Dow Jones Industrial Average DJIA,
And S&P 500 SPX,
The trade was scheduled to open higher on Thursday.