The US Labour Department said on Thursday that the number of Americans applying for first-time state unemployment aids dropped to a 14-month low last week as companies raced on to a hiring-spree with layoffs hitting the lowest level since 2000 amid a chronic labour shortage.
Aside from a persistent lag in supplies of labours amid massive Government stimulus, a record rise in domestic demands in context of a rapidly recovering US economy last mont bode well for the labour market. On top of that, other economic data released earlier in the day had unveiled that US Producers Price Index soared more-than-anticipated last month, reporting its biggest annual gain in more than a decade, suggesting a further upward spiral in US inflation with US CPI (Consumer Price Index) rising as much as 0.8 per cent last month, the strongest level since June 2009.
US weekly jobless claims drop to 14-month low
According to US Labour Department data released earlier on the day, US initial jobless claims dipped 34,000 last month to a seasonally adjusted 473,000 during the week that ended on May 8, marking up the lowest level since mid-March 2020, though claims stayed well above an average between 200,000 to 250,000, widely contemplated as a healthy reading for the labour market, since hitting a record 6.14 million in the early days of pandemic outbreak last year.
Meanwhile, as several states in the South and Midwest part of the United States including Tennessee and Missouri reporting a decline in unemployment rate below an average of 6.1 per cent clocked last month, addressing to an ultra-low level of layoffs in recent weeks, a corporate economist at Navy Federal Credit Union in Vienna, Virginia, Robert Frick said, “With demand for workers high and layoffs relatively low, we should see strong hiring in the months to come, as barriers to employment, such as lack of childcare, lessen.
For many, especially low-wage workers, returning to a job is a puzzle in which several pieces, such as transportation, wage levels and benefits must fall into place. ”