U.S. unemployment claims decline as labor market recovery continues

File Photo: The Panda Express restaurant will display the “Now Hiring” sign on June 1, 2021 in Tampa, Florida, USA. REUTERS / Octavio Jones

August 12, 2021

Washington (Reuters) – Last week, the number of Americans applying for unemployment benefits declined. This shows that the economic recovery from the COVID-19 pandemic continues to gain momentum.

Initial claims for state unemployment allowance decreased by 12,000 to seasonally adjusted 375,000 for the week ending August 7. Last week’s data was revised to indicate that we received 2,000 more applications than previously reported.

Economists surveyed by Reuters predicted 375,000 applications last week. Unadjusted claims that provide a better reading of the labor market fell from 5,198 to 320,517 last week.

Claims fell from a record 6.149 million in early April 2020, but well above pre-pandemic levels of 256,000.

There remains concern that the increase in cases of coronavirus caused by the delta mutation may delay employment recovery in the face of a labor shortage. At the end of June, there were a record high of 10.1 million jobs. About 8.7 million people are officially unemployed.

The claim report shows the number of people who continue to receive benefits even after the first week of aid for the first week of the week ending July 31 has dropped from 114,000 to 2,866 million.

There is still a long way to go for the recovery of the labor market. Approximately 12055,000 people, the same as in the previous report, were unemployed in all programs in late July.

The economy quickly regained momentum and passed its pre-pandemic peak in the second quarter. This is due to increased spending on goods and services due to trillions of government relief and increased vaccination against COVID-19.

Another report from the U.S. Department of Labor showed on Friday that U.S. producer prices rose more than expected in June, and inflation continued to hit the supply chain as strong demand supported by the recovery continued to hurt the supply chain. It suggests that it may remain high. The producer price index for final demand rose 1.0% last month after rising 1.0% in June. In the 12 months to July, PPI surged 7.8%.

(Report by Lindsay Dunsmuir, edited by Nick Zieminski)

U.S. unemployment claims decline as labor market recovery continues

Source link U.S. unemployment claims decline as labor market recovery continues

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