US jobless claims drop to fresh 14-month low as economic recovery accelerates

by   |  VIEW 901

US jobless claims drop to fresh 14-month low as economic recovery accelerates

On Thursday, the US Labour Department said that the number of Americans filing for first-time state unemployment benefits fell to a fresh 14-month low last week as layoffs dropped and US businesses rushed to revive hiring in a bid to cope up with an abrupt upsurge in domestic demands amid a robust reopening of the economy.

In point of fact, latest US Labour Department data underscoring a sharp shoot-up in rehiring came forth a day after Government data had reaffirmed that the US economy grew by 6.4 per cent over first quarter of the year, the second-fastest pace since Q3, 2003, while other economic data released earlier in the day had unfurled that US business spending on equipment rose more than anticipated in April.

Aside from that, while a steep increase in US business borrowing for equipment last month had led to analysts’ belief that US business investments would likely to step up far beyond expectations over coming months, an uptick in new orders for US-borne core capital goods in April came as a vivid vindication of a meteoric rise in domestic demands.

US initial jobless claims dip to fresh 14-month low

According to US Labour Department data released earlier in the day, initial jobless claims declined 38,000 to a seasonally adjusted 406,000 in the week that ended on May 22, remarking a fourth straight week of decline in applications alongside the lowest level since mid-March 2020.

Meanwhile, as a rapidly healing US labour market seemed to be gaining further traction, riding on the back of a nearly $1.9 trillion in stimulus package disbursed in March alongside prospects of a $6 trillion budget in fiscal 2022 as cited by a New York Times report, expressing an out and out optimism about the pace of a rapidly recovering US labour market, a senior economist at Moody’s Analytics in West Chester, Pennsylvania, Scott Hoyt said, “The economy is off and running.

Going forward growth will be supported by the pent-up savings that households have amassed during the pandemic.