US labour market healing despite unexpected rise in jobless claims; layoffs fall



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US labour market healing despite unexpected rise in jobless claims; layoffs fall

On Thursday, US Labour Department data had unveiled that the number of Americans filing for first-time state unemployment benefits rose last week, marking up an increase for the first time in more than one month and a half, however, a sharp decline in layoffs amid a sweeping shortage of workers appeared to have stabilized the labour market.

In the latest flashpoint of a roaring US economy, other data released earlier in the day had unwrapped that the mid-Atlantic region’s factory activities advanced at a steady pace earlier this month, while a measure of future output soared to the strongest in more than 30 years.

Aside from that, rehiring in factories in eastern Pennsylvania, Southern New Jersey alongside Delaware had reportedly been gathering tractions last month, which had been well in alignment with a 0.9 per cent rise in manufacturing output last month.

US weekly jobless claims increase for the first time in 1-1/2 months

According to US Labour Department report released on Thursday, the number of Americans filing for initial jobless claims increased 37,000 to a seasonally adjusted 412,000 during the week that ended on June 12, missing an analysts’ estimate of 359,000 applications last week, while continuing claims rose marginally to 3.518 million.

Meanwhile, referring to a steep scarcity of labours which had been a key obstacle to faster employment growth over recent months, an economist at Indeed Hiring Lab Ann Elizabeth Konkel said following the announcement, "We continue to see labor market progress, but as has been the case through the pandemic, the situation remains fluid.

We are in a wildly different place than we were in June 2020, but we have not crossed the finish line just yet.