Market Commentary

Unemployment Claims

unemployment claims

Yesterday the weekly report on unemployment claims fell to 712,000 the lowest level since November 7th where it was 711,000. That was less than expected and finally showed some movement in the right direction, down.

However, that does not reveal the whole picture of people needing unemployment benefits and many of these payments expire after a prolonged time limit. There are special federal benefits and that showed 478,000 applications through the temporary federal relief program.

However, it is important to look at the trend. Before this week the numbers were steady all above 700,000 for many weeks. This is the first significant fall. With the vaccine out, and covid cases falling, the economy will gain strength with or without a stimulus, but President Biden is signing a new huge stimulus package today, and that can only boost the economy further.