US weekly jobless claims spike unpredictably

Files of new claims for unemployment benefits in the United States unexpectedly rose in the previous week. The labor market, however, is starting to move forward as more businesses reopen due to faster coronavirus vaccination rollouts.

The Labor Department reported a seasonally adjusted 770,000 initial claims for unemployment benefits recorded in the week that ended March 13, significantly rising from the previous 725,000 the other week. The number also overwhelmed economists’ estimate of 700,000 applications.

As of Wednesday, a total of 113,037,627 doses of coronavirus vaccines were administered in the United States, and 147,590,615 doses distributed in total, according to the U.S. Centers for Disease Control and Prevention. Economic re-engagement is expected to grow as vaccine rollouts are now at a faster pace.

The recovery of the labor market is boosted by the approved $1.9 trillion relief package of the Biden administration.

From 6.867 million in March last year, the country’s unemployment claims have significantly dropped.