Thursday 01 July 2021 2:41 pm

US jobless claims drop to new pandemic low

Jobless claims dropped in April US Labour Department reported

The number of Americans applying for unemployment aid dropped to its lowest level since the onset of the pandemic, new figures released today reveal.

The US Labor Department reported Thursday that jobless claims dropped by 51,000 to 364,000.

The figures provide further evidence that the US labour market is rebounding strongly from the damage inflicted on it by the pandemic and measures to curb its the spread.

The vaccine rollout in the US has picked up pace in recent months, helping to slow virus infections and encourage policy makers to continue to lift restrictions.

High vaccine take up has boosted consumer confidence, promoting households to increase spending on goods and services unavailable for months due to Covid restrictions.

Firms are increasing hiring activity to meet strong demand, which has increased the volume of job opportunities for Americans.

However, employers are struggling with labour shortages, fuelling fears that inflation could ramp up further as firms increase wages to attract workers.

Neil Birrell, chief investment officer at Premier Miton, says: “US initial jobless claims came in better than expected but the continuing claims were worse than thought and higher than last week.”

“This shows that whilst economic activity continues to improve, the recovery has a long way to go as the economy heals.”