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The numbers: The number of new applications for U.S. unemployment benefits fell sharply in early March to the lowest level since last November.
Initial jobless claims filed traditionally through the states fell by 42,000 to 712,000 in the week ended March 6, the government said Thursday. That’s the lowest level since the week ended Nov. 7.
Economists surveyed by Dow Jones and The Wall Street Journal had forecast new claims would fall to a seasonally adjusted 725,000 from last week’s initial estimate of 745,000. That number was revised up by 9,000 to 754,000.
Another 478,000 applications for benefits were filed through a temporary federal-relief program. These numbers are unadjusted.
Read: Inflation worries are back. Should you worry?
What happened: The number of people already collecting traditional unemployment benefits fell 193,000 to a seasonally adjusted 4.14 million. These claims are reported with a two-week lag.
An additional 5.5 million who have exhausted state compensation were getting benefits through an emergency program funded by the federal government.
Altogether, the number of people reportedly receiving benefits from eight separate state and federal programs was reported at an unadjusted 20.1 million as of Feb. 20.
By contrast, fewer than 2 million people were getting benefits before the pandemic erupted.
Note to readers: A government review found the number of distinct individuals collecting benefits has been inflated by fraud and double counting. Economists say to pay attention to the direction of claims instead of the totals.
Read: Jobless claims inflated, GAO finds
The big picture: The U.S. economy is regaining momentum after a winter lull as coronavirus cases decline and President Biden prepares to sign a $1.9 trillion stimulus bill that includes $1,400 checks for most Americans.
Read:The economy is ready to rip after stimulus and faster coronavirus vaccinations
The U.S. labor market added the most jobs in four months in February and many companies indicate they plan to add more workers after the economy fully opens.
Yet the still-high number of layoffs as shown by jobless claims is a big concern. Economists predict they will gradually subside as more people get vaccinated and the pandemic fades.
See: A visual look at how an unfair pandemic has reshaped work and home
Market reaction: The Dow Jones Industrial Average DJIA, +1.46% and S&P 500 SPX, +0.60% were set to open higher in Thursday trades as long-term bond yields TMUBMUSD10Y, 1.504% declined.
