© Freerlaw/Dreamstime
Unemployment Insurance Form © Freerlaw Dreamstime
Unemployment Insurance Form © Freerlaw Dreamstime
Unemployment Insurance Form © Freerlaw Dreamstime
Unemployment Insurance Form © Freerlaw Dreamstime
Unemployment Insurance Form © Freerlaw Dreamstime

New Unemployment Insurance Claims Reach a New Low

May 13, 2021
The number of people applying for insurance benefits has fallen four of the last five weeks.

The Bureau of Labor Statistics’ latest release of data on unemployment insurance claims shows that 473,000 people applied for benefits last week, its lowest point since March 2020. The number for last week’s claims is down 34,000 from the last week of April, when 507,000 people made claims.

The weekly number, despite a persistent downward trend, is still well above where it was before the pandemic: The number of initial claims for the week of March 14, 2020 was 256,000. Last year at this time, 2,315,000 people filed for initial unemployment insurance.

The numbers indicate that fewer businesses are laying off workers as the U.S. economy sputteringly returns to something like business as usual. They come a week after an unexpectedly tepid jobs report showed the nonfarm economy added only 266,000 jobs in April, fewer than expected.

Meanwhile, some sectors of the economy are still experiencing layoffs, including manufacturing. U.S. manufacturing in April lost an estimated 18,000 net jobs thanks to heavy losses in the transportation equipment sector.

The sluggish pace of new hires has been blamed by Republicans on temporarily expanded unemployment benefits from stimulus bills passed during the pandemic, and twelve GOP governors have announced their intentions to cut off federally-provided extra $300-a-week benefits they say can disincentivize returning to work.

President Biden has pushed back on the idea the extra benefits were to blame for last month’s hiring drop-off and said the Labor Department is working to renew requirements that those seeking benefits must apply for and accept job offers. Those requirements were suspended during the pandemic, and according to the AP a majority of states have restored them.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!