Jobless claims decrease for a third consecutive week

Applications for U.S. state unemployment benefits fell last week to the lowest level since the end of November, a sign that job cuts are starting to slow as COVID-19 infections ebb.

Initial jobless claims in regular state programs decreased by 33,000 to 779,000 in the week ended Jan. 30, the third straight decline, Labor Department data showed Thursday. On an unadjusted basis, applications dropped to 816,247.

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Continuing claims — an approximation of the number of Americans filing for multiple weeks of state benefits — decreased to 4.59 million in the week ended Jan. 23.

The figures, while still elevated, indicate that layoffs related to the pandemic are starting to ebb after jobless claims picked up in December and early January. In the coming months, as more Americans get inoculated and virus cases fall, economic activity is poised to resume and job cuts may decline further.

Stock futures ticked higher and bonds extended their recent slide as economic data and corporate earnings continued to roll in.

Policy makers are starting to lift some of the most stringent business restrictions, which should also help to stabilize the labor market. New York Governor Andrew Cuomo said indoor dining can reopen in New York City on Feb. 14, and California Governor Gavin Newsom lifted the state’s stay-at-home order on Jan. 25.

The jobless claims data precede Friday’s monthly jobs report, which is forecast to show the labor market added about 100,000 jobs in January after a 140,000 decline in December. Data from ADP Research Institute Wednesday showed company payrolls increased by 174,000 in January.

On Tuesday, Senate Democrats put President Joe Biden’s $1.9 trillion stimulus plan on a fast track to passage, increasing the likelihood it eventually passes on a party-line vote. The bill text has not been drafted yet, but Biden’s proposal includes an extension of expiring federal unemployment programs through September and an increase of supplemental benefits from $300 to $400 per week.

Separate data Thursday showed productivity — or output per hour — fell in the final three months of 2020 by the most since 1981. The decline was a result of a larger jump in hours worked than in output, as more Americans headed back to work.