States reported that 444,000 workers filed for new unemployment benefits during the week ending May 15, a decrease of 34,000 from the previous week's revised level and the lowest level of initial claims since Mar. 2020. The total number of workers continuing to claim state unemployment benefits ticked up to 3.7 million. Claims have fallen significantly in recent months but remain elevated.
Even though weekly jobless claims are improving, employers are reporting labor supply shortages. Some economists have pointed to enhanced unemployment benefits and expanded eligibility as factors contributing to these shortages, especially in the services sector. For that reason, at least 21 states are cutting off access to federal benefits this summer, before the program's Sept. expiration.
About 16 million people overall are receiving some type of unemployment aid. That includes about 11.7 million people enrolled in emergency programs such as the Pandemic Unemployment Assistance program for gig workers and the self-employed and the Pandemic Emergency Unemployment Compensation program, which offers an additional 24 weeks of benefits.