Initial unemployment insurance claims increased from a revised 784,000 the prior week to 965,000, while continued claims increased to almost 5.3 million. The extension of extra unemployment benefits may be influencing this trend.
Overall, the labor market’s rebound has stalled, while virus counts surge and vaccine rollouts are behind schedule. December’s negative job growth will likely extend into January. Though Q1 is starting off bumpy, LaborIQ® by ThinkWhy still expects major improvement later in 2021 once the virus is under control.