US labour market regains footing; initial jobless claims tick up amid winter storm

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US labour market regains footing; initial jobless claims tick up amid winter storm

Earlier on Thursday, US Labour Department said in a statement that the number of Americans filing for first-time state unemployment aids rose moderately last week, mostly caused by a ruthless Texas winter storm that led to a stalemate in businesses in the densely populated US state alongside other South-western part of the country, however, other economic data published on the day had depicted a beacon of hope at the end of a tunnel for a near-stagnant US labour market amid a steep decline in new pandemic cases.

Apart from that, other data published earlier in the day had unveiled that the lay offs by US-based companies fell as much as 57 per cent in February, mostly driven by a roughly $892 billion in additional pandemic stimulus bill passed in the US Senate later last year.

Labour market landscape begins to brighten up

Nonetheless, according to US Labour Department data released earlier in the day, the number of Americans filing for initial jobless benefits increased marginally by 9,000 to a seasonally adjusted 745,000 over the week that ended on February 27, below an analysts’ forecast of 750,000 applications last week.

In factuality, stormy weather coupled with a frozen temperature in the Southern part of the US left large regions without power for days, while a raft of refiners among other businesses had been forced to shutter down production.

Meanwhile, as weekly initial jobless claims scaled significantly higher in the US states of Texas and Ohio on the latest week, a senior economist at Wells Fargo Securities in Charlotte, North Carolina, Sarah House said, “The jobs picture is beginning to firm up again after a rough winter”.