US initial jobless claims fall by 249,000, but Covid-19 repercussions still severe

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US initial jobless claims fell by 249,000 in the week ended May 30 from the previous week to a total of almost 1.9 million, according to seasonally adjusted numbers released today by the US Department of Labor. The previous week’s level was revised upward by 3,000.

The four-week moving average of claims fell by 324,750 from the previous week’s revised average to approximately 2.3 million; the previous average was revised upward by 750.

Economists surveyed by Dow Jones had been anticipating approximately 1.8 million new claims, CNBC reported. And continuing claims — which provide a clearer picture of how many Americans remain unemployed — rose sharply, a sign that workers are being called back to work slowly, CNBC reported. Continuing claims increased by 649,000 to nearly 21.5 million, also worse than Wall Street expected.

“Even as states reopen, claims in the millions are an indicator that the economic pain of the Covid-19 crisis is still acute,” said Daniel Zhao, senior economist at job placement site Glassdoor.