Total US unemployment shrinks for the first time since coronavirus layoffs began in March

Roughly 21.1 million Americans claimed unemployment insurance in the week that ended on May 16, a decline from the previous week’s record of roughly 25 million, the Labor Department said on Thursday.It was the first time that continuing claims, reflecting those receiving unemployment benefits, had declined since coronavirus-related layoffs began in March.It’s a sign that…

Total US unemployment shrinks for the first time since coronavirus layoffs began in March

Roughly 21.1 million Americans claimed unemployment insurance in the week that ended on May 16, a decline from the previous week’s record of roughly 25 million, the Labor Department said on Thursday.It was the first time that continuing claims, reflecting those receiving unemployment benefits, had declined since coronavirus-related layoffs began in March.It’s a sign that hiring may be rebounding slightly as states continue reopening their economies from shutdowns to curb the spread of COVID-19.Visit Business Insider’s homepage for more stories.

This week’s jobless-claims report contained a surprise: Total unemployment dipped for the first time since layoffs due to the coronavirus pandemic began in March.The Labor Department said on Thursday that 21.1 million Americans claimed unemployment insurance in the week that ended on May 16, a decline from the previous week’s record of roughly 25 million. Total unemployment, reflected in continuing claims, lags behind initial-claims data by one week.”It’s still an extremely large number, but if the number of people continuing to file for unemployment benefits is decreasing then this should be viewed as a positive for the economy as more people are going back to work as states begin the re-opening process,” Chris Zaccarelli, the chief investment officer of the Independent Advisor Alliance, said in an email.

Andy Kiersz/ Business Insider

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