The number of Americans submitting claims for the first time to unemployment benefits fell last week despite other indications that the labor market was weakening by the end of 2020.
A report released by the Department of Labor today showed that the total unemployment claims last week recorded a total reading of 787,000 claims. This reading is less than the expectations set by the analysts at 815,000 and a slight decrease compared to the previous week of 790,000.
The report also shows a steady decline in total claims by 126,000 to a total reading of 5.07 million. The number of people who benefited from all the assistance announced by the government also decreased by 420,000 to 19.2 million.
On the other hand, the private sector recorded a recruitment of private employees for the first time at 123,000 in December. This is because, due to the uncontrolled transmission of Covid-19, the government had to impose business restrictions that make certain types of business such as restaurants, bars and some types of services have to be closed.
The employment report released last Friday reported that the U.S. economy had successfully created 245,000 jobs in November, a small increase in the NFP since May.
The Department of Labor is expected to report a comprehensive employment report on Friday with an expectation of adding 50,000 jobs and the unemployment rate is seen to rise higher to 6.8%.
The US dollar index, which measures the greenback against the major, recorded a strengthening of 89,782 exchange rates as of 10.30 p.m.
