The number of initial jobless claims in the United States, the representative of layoffs, is at a new pandemic low | Business and Economic News
As the labor market continues to recover, the number of people applying for unemployment benefits in the United States fell to 364,000 last month, the lowest level in 16 months.
The US labor market was unexpected on Thursday.
The U.S. Department of Labor said the number of Americans who applied for state unemployment benefits fell by 51,000 last week to a new pandemic low of 364,000.
This number is better than many economists expected, and it shows that as the coronavirus vaccination rate climbs, the COVID-19 restrictions that weaken businesses are removed, and American consumers, whose spending drives about two-thirds of the U.S. economy , The US job market is continuing to recover. Growth-waking up from hibernation.
In the week ending June 19, the total number of Americans currently receiving unemployment benefits from each state (a measure called continuous filing) increased by 56,000 to 3.46 million.
The number of first-time jobless claims (representing layoffs) is still higher than the pre-pandemic average of about 220,000 people, but it has more or less declined throughout the year, rising only twice a week since the beginning of April.
“When President Biden took office [in January], An average of more than 800,000 people file new unemployment applications every week-and now that number has been reduced by more than half,” the White House said in a press statement on Thursday.
“This is just the latest sign of the president’s plan to rebuild the economy.”
However, in this context of improving labor markets, as companies across the country scramble to hire enough workers to reopen and expand operations, support for the country’s unemployed has become a hot topic.
In April, there were approximately 9.3 million job vacancies – A record highHowever, in May, 9.3 million people were unemployed in the United States.
Some people believe that federal unemployment benefits, including a state benefit subsidy of $300 a week, are inhibiting the unemployed from finding work.
More than 20 states have announced that they will withdraw from the federal program early—some states have already started—on the grounds that companies are struggling to hire enough workers to meet the recovery needs.
But economists pointed out other factors that may keep unemployed workers on the sidelines-such as the continued lack of available childcare services, people retire early, the recruitment bottleneck of certain labor when companies reopen on a large scale, and the fear of contracting COVID —— 19.
All eyes are now turning to Friday, when the Department of Labor will release its June comprehensive monthly employment report.