US jobless claims fall, still millions laid off; Labour market distress persists

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US jobless claims fall, still millions laid off; Labour market distress persists

US weekly jobless claims data released on Thursday by the US labour market had delivered an ambivalent texture with numbers of Americans seeking unemployment benefits falling, nonetheless, still millions of Americans were filing for unemployment benefit checks, suggesting that the US economy might require quite a while to heal from the pandemic-driven economic slump.

Nonetheless, gawking on the glittery side, Thursday’s weekly jobless claim data that revealed the US initial claims for jobless benefits fell by 355,000 to 1.542 million for the week that ended on June 6, marking up the tenth straight week of decline since a record peak of 6.867 million reached on late-March, comes over the heels of last Friday’s surprise gain of 2.5 million jobs in non-farm activities and reinforces view that the worst of pandemic-led slump in the US labour market might just be over.

On top of that, a separate report on PPI for final demand (Producer Price Index) from the US Labour Department released earlier on Thursday, came as a sigh of relief for the retail market, since the index had rebounded 0.4 per cent last month after taking a header of 1.3 per cent in April.

Nonetheless, the US Labour department had also added that the producer prices index for final demand had increased due to a 40.4 per cent upsurge in the prices of meat over the narratives of a pandemic-led shortage.

Initial jobless claims are still more than two-fold of their peak of 2007-09 Great Depression

In point of fact, although Thursday’s initial jobless claim data for the week that ended on June 6 had been slightly better than the Wall St.

forecasts of a reading of 1.55 million in new jobless claims, other economic data released last week alongside a dour economic projection from the US Federal Reserve had whacked away optimisms of an earlier-than-anticipated economic recovery.