The number of the first applications for unemployment benefits in the USA fell more than expected

The number of the first applications for unemployment benefits in the USA fell more than expected

The number of the first applications for unemployment benefits in the USA fell more sharply than expected last week. Nevertheless, the number of applications remains high. According to the US Department of Labor, the number of the first applications for support reached 712,000 in the week ending November 28. Compared to the previous week, for which the data were revised upwards, this means a decrease of 75,000. In the week to 21 November, the number of first applications after the revision reached 787,000, while the original figures indicated 778,000 applications. The result was also better compared to economists' estimates. They expected the number of first applications for unemployment benefits to fall to 775,000 last week. Despite a sharper-than-expected decline, the number of Americans applying for unemployment benefits is still high. However, data processing can also be behind this. The US Audit Office (GAO) warned earlier in the week that the number of applications is inaccurate. The reason is that the Ministry of Labor continues to use traditional methods in data processing, which are not suitable due to the economic shock caused by the pandemic of the new coronavirus and sometimes increase the number of applications. Markets are currently waiting for data on overall developments in the US labor market over the past month. These will be published by the Ministry of Labor on Friday, December 4.