US initial jobless claims drop to one-year low in boost to economy

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US initial jobless claims drop to one-year low in boost to economy

In latest sign of a rapid recovery in the gradually energising US labour market, Thursday’s Labour Department data on initial jobless claims came forth as a considerable sigh of relief, as the number of Americans filing for first-time state unemployment benefits fell to one-year low last year, pointing towards a robust boost to a US economy which seemed to be hauling on the brisk of an earlier-than-anticipated recovery following disbursement of a $1.9 trillion in pandemic reliefs.

Apart from another round of pandemic stimulus package, an improving public health condition across the country with inoculation drives against the pandemic being accelerated and temperatures rising, seemingly had played a pivotal role to restore business confidence, eventually leading to an expected rise in re-hiring.

Nonetheless, expressing caution over US labour market outlook, US Labour Department data released earlier in the day had also unveiled that a staggering 18.95 million Americans had still been making their ends meet over state unemployment benefits earlier this month, pointing that it might take months to jailbreak a pandemic-battered US labour market, if not a year.

US jobless claims fall to 12-month low

Nevertheless, according to Labour Department data unveiled earlier on Thursday US trading hours, the number of Americans applying for initial jobless claims fell just shy of 100,000 to a seasonally adjusted 684,000 during the week that ended on March 20, a level never seen since mid-March last year.

If truth is to be told, latest uprising in US labour market was mostly boosted by the US President Joe Biden’s trillion-dollar stimulus package amid steeper risks of a higher inflation alongside a soaring budget deficit, while followed by the Labour Department data, Biden said in a statement, “There are still too many Americans out of work, too many families are hurting and I still have a lot of work to do. But I can say to you the American people, help is here and hope is on the way.