# U.S. weekly jobless claims increase; third-quarter growth raised Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-09-30 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Weekly Rise in Jobless Claims Signals Potential Economic Meta Description: Despite a rise in weekly jobless claims, the US labour market shows signs of recovery. Economic growth concerns persist amid COVID-19 impacts. URL: https://financedigest.com/u-s-weekly-jobless-claims-increase-third-quarter-growth-raisedhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-09-30t124448z2lynxmpeh8t0ohrtroptp4usa-economy-employment-1736837729851-compressed.jpg) By Lucia Mutikani WASHINGTON (Reuters) – The number of Americans filing new claims for jobless benefits rose further last week amid another increase in California, but the labor market recovery remains intact, with unemployment rolls steadily shrinking in mid-September. Still, the third straight weekly increase in jobless claims reported by the Labor Department on Thursday could raise concerns that slowing economic growth could persist beyond the third quarter. Economic activity has [cooled because of a resurgence in COVID-19](https://www.financedigest.com/recovery-bus-provides-cool-relief-for-s-koreas-covid-19-testers.html "‘Recovery bus’ provides cool relief for S.Korea’s COVID-19 testers") cases, driven by the Delta variant of the coronavirus, and the fading boost from pandemic relief money from the government. “This is not just the Delta variant. It could be the start of a significant slowdown in [economic growth](https://www.financedigest.com/different-employee-engagement-outcomes-for-u-s-and-canadian-companies-amidst-continued-economic-growth-pressures.html "DIFFERENT EMPLOYEE ENGAGEMENT OUTCOMES FOR U.S. AND CANADIAN COMPANIES AMIDST CONTINUED ECONOMIC GROWTH Pressures"), which would make it harder for those who lost their jobs in the pandemic to regain their positions or find new opportunities,” said Christopher Rupkey, chief economist at FWDBONDS in New York. Initial [claims for state unemployment benefits](https://www.financedigest.com/why-you-might-want-to-wait-until-age-70-to-claim-social-security-benefits.html "Why You Might Want to Wait Until Age 70 to Claim Social Security Benefits") rose 11,000 to a seasonally adjusted 362,000 for the week ended Sept. 25. Economists [polled by Reuters](https://www.financedigest.com/bank-of-england-to-raise-rates-by-50bps-again-to-tame-inflation-reuters-poll.html "Bank of England to raise rates by 50bps again to tame inflation: Reuters Poll") had forecast 335,000 applications for the latest week. Claims have been rising, with economists blaming a range of factors including wildfires in California and the lingering effects of Hurricane Ida, which struck the Gulf Coast in [late August and caused record flooding in New York](https://www.financedigest.com/stellantis-unveils-ram-ev-pickup-to-debut-late-in-2024-at-new-york-auto-show.html "Stellantis unveils Ram EV pickup, to debut late in 2024, at New York auto show") and New Jersey in early September. The latest wave of coronavirus infections could also have caused some companies in the high contact [services sectors](https://www.financedigest.com/decline-in-german-services-sector-eases-raising-hopes-for-milder-recession-pmi.html "Decline in German services sector eases, raising hopes for milder recession -PMI") to layoff workers. The upheaval caused by the pandemic has also made it harder to adjust the data for seasonal fluctuations. Unadjusted claims, which economists say offer a better read of the [labor market](https://www.financedigest.com/u-s-job-growth-surges-in-july-as-labor-market-defies-recession-fears.html "U.S. job growth surges in July as labor market defies recession fears"), fell 8,326 to 298,255 last week. [Claims in California increased 17,978 last week](https://www.financedigest.com/u-s-weekly-jobless-claims-fall-layoffs-lowest-in-more-than-21-years.html "U.S. weekly jobless claims fall; layoffs lowest in more than 21 years"), adding to the 17,218 rise in the prior week. California [offered no reasons for the string of increases](https://www.financedigest.com/carrefour-management-increases-offer-in-wage-talks-with-unions.html "Carrefour management increases offer in wage talks with unions"). There was also a rise in applications in Michigan last week, likely related to the idling of assembly [plants by some automakers as they try to manage their supply](https://www.financedigest.com/germanys-uniper-to-restart-coal-fired-power-plant-as-gazprom-halts-supply-to-europe.html "Germany’s Uniper to restart coal-fired power plant as Gazprom halts supply to Europe") of semiconductors amid a global shortage. Claims in Texas also rose significantly. There were, however, big declines in filings in Virginia, Maryland, Arizona, Ohio and Louisiana. Claims, which have dropped from a record 6.149 million in early April 2020, remain well above their pre-pandemic levels. With economic activity appearing to be picking up after being restrained by the latest coronavirus wave, claims are likely to decline in the weeks ahead. There are indications that infections are subsiding, though deaths remain high. Fortunately the wave has crested, but just as with previous waves, it takes a few weeks at least before consumers return to certain businesses, and those businesses stop laying off workers,” said Robert Frick, corporate economist at Navy Federal [Credit Union](https://www.financedigest.com/6-reasons-to-take-a-car-loan-from-a-credit-union.html "6 Reasons to Take a Car Loan From a Credit Union") in Vienna, Virginia. “The downward trend could resume in October.” U.S. stocks [opened higher](https://www.financedigest.com/wall-street-seen-opening-higher-but-u-s-recession-priced-in.html "Wall Street seen opening higher but U.S. recession priced in"). The [dollar was steady](https://www.financedigest.com/shares-steady-dollar-gains-ahead-of-u-s-inflation-data.html "Shares steady, dollar gains ahead of U.S. inflation data") against a basket of currencies. U.S. [Treasury prices](https://www.financedigest.com/stocks-jump-as-treasury-yields-ease-and-oil-prices-sell-off.html "Stocks jump as Treasury yields ease and oil prices sell off") fell. UNEMPLOYMENT ROLLS SHRINKING The [claims report also showed the number of people continuing to receive benefits after an initial week of aid dropped 18,000 to 2.802 million](https://www.financedigest.com/philips-subsidiary-to-pay-over-24-million-for-alleged-false-claims-for-medical-equipment.html "Philips subsidiary to pay over million for alleged false claims for medical equipment") in the week ended Sept. 18, a sign that more [people were finding work](https://www.financedigest.com/uk-employment-sector-set-for-huge-shift-over-1-5-million-people-to-trade-in-full-time-work-for-the-gig-economy.html "UK employment sector set for huge shift: Over 1.5 million people to trade in full-time work for ‘the gig economy’"). The so-called continuing claims covered the week during which the government surveyed households for September’s [unemployment rate](https://www.financedigest.com/u-s-job-growth-powers-ahead-unemployment-rate-at-3-4.html "U.S. job growth powers ahead; unemployment rate at 3.4%"). Continuing claims decreased slightly between the August and September survey periods. The [claims data](https://www.financedigest.com/frances-thales-says-hackers-claim-to-have-stolen-data.html "France’s Thales says hackers claim to have stolen data") is being watched for signs of how soon a shortage of workers, which is constraining hiring, will start easing after the expiration early this month of federal government-funded benefits. Those expanded benefits were blamed by businesses and Republicans for [keeping the unemployed at home](https://www.financedigest.com/five-ways-to-keep-your-head-above-water-while-working-from-home.html "Five ways to keep your head above water while working from home"). There were a record 10.9 million open [jobs at the end](https://www.financedigest.com/hp-to-cut-about-12-jobs-by-end-of-fiscal-2025.html "HP to cut about 12% jobs by end of fiscal 2025") of July. More than 8 [million people](https://www.financedigest.com/the-start-up-using-technology-to-help-the-20-million-people-in-britain-with-money-worries.html "The start-up using technology to help the 20 million people in Britain with money worries") are estimated to have lost all their pandemic benefits on Sept. 6. As a [result the total number of people](https://www.financedigest.com/uk-pm-sunak-election-results-show-people-want-us-to-deliver-for-them.html "UK PM Sunak: Election results show people want us to deliver for them") receiving unemployment checks under all programs dropped to 5.028 million during the week ended Sept. 11 from 11.250 million in the prior week. “So far, evidence from the states that ended benefits early over the summer suggests that even with the end of unemployment benefits nationally, there is unlikely to be a sudden and large return to the labor force,” said Veronica Clark, an economist at Citigroup in New York. The economy [created 235,000 jobs](https://www.financedigest.com/italy-jan-jobless-rate-edges-up-to-7-9-with-35000-jobs-created.html "Italy Jan jobless rate edges up to 7.9%, with 35,000 jobs created") in August, the fewest in seven months. Lack of childcare, fears of [contracting the coronavirus and pandemic-related career changes](https://www.financedigest.com/the-antibodies-contract-manufacturing-market-to-see-through-the-probable-sea-change-through-digitization.html "The Antibodies Contract Manufacturing Market to see through the probable sea change through digitization") have been blamed for the worker shortage. A separate report from the [Commerce Department on Thursday confirmed that economic](https://www.financedigest.com/how-digital-commerce-merchants-can-weather-the-economic-storm.html "How Digital Commerce Merchants Can Weather the Economic Storm") growth accelerated in the second quarter, thanks to fiscal stimulus, which boosted consumer spending. Gross domestic product [increased at a 6.7% annualized](https://www.financedigest.com/coca-cola-hbcs-annual-profit-beats-warns-of-price-increases.html "Coca-Cola HBC’s annual profit beats, warns of price increases") rate, the department said in its third estimate of GDP growth for the April-June quarter. That was revised up from the 6.6% pace of [expansion reported](https://www.financedigest.com/harmonic-generators-market-projected-to-discern-stable-expansion-during-2021-2031-fact-mr-report.html "Harmonic Generators Market Projected to Discern Stable Expansion during 2021-2031: Fact.MR Report") in August. The [economy grew at a 6.3% rate](https://www.financedigest.com/interest-rate-hold-signals-confidence-in-uk-economy.html "Interest rate hold signals confidence in UK economy ") in the first quarter. Growth, however, looks to have slowed in the third quarter because of the Delta variant as well as shortages of raw materials, which have hurt [motor vehicle sales and constrained home](https://www.financedigest.com/uk-motor-and-home-insurers-headed-for-heavy-losses-ey-warns.html "UK motor and home insurers headed for heavy losses, EY warns") building and purchases. [Growth estimates](https://www.financedigest.com/recycled-glass-market-estimated-to-experience-a-hike-in-growth-by-2019-2027.html "Recycled Glass Market Estimated to Experience a Hike in Growth by 2019-2027") for the third quarter are below a 5% rate. (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---