Americans saw an increase in the number of applications for unemployment benefits last week. This indicates that the level of unemployment in the country remains high due to ongoing problems in the labor market caused by the pandemic.
On Thursday, the U.S. Labor Department reported that the number of initial claims for unemployment benefits rose by 7,000 to 719,000 for the week ending February 26. This was slightly higher than economists had anticipated.
"Although the labor market situation is gradually improving, it remains fragile due to ongoing problems in the labor market," noted the chief economist of Mercantile Bank.
Analysts point out that the number of applications for unemployment benefits remains at a high level, although it has decreased since the beginning of 2022. Some experts attribute this to companies continuing to cut jobs to cope with financial difficulties caused by the pandemic.
