On Thursday, US Labour Department data had unveiled that the number of Americans filing for first-time state unemployment claims fell last week, as US labour market appears to be gradually healing from a pandemic-led pandemonium amid a sharp shoot-up in domestic demands following a robust reopening of the economy.
Nonetheless, US weekly initial jobless claims still charter above a 400,000 mark. Apart from that, other fiscal data released earlier in the day had unenveloped a solid rise in shipments last month, while a meteoric upswing in business borrowing in May, a critical indicator to future investment plans, had led to investors’ belief that the economy might be on the brisk of a double-digit growth in gross outputs over current quarter.
On top of that, the Labour Department report had also unfurled that the US states, which had already lifted an additional $300 per week in unemployment benefits under a Biden Administration fiscal stimulus program, had witnessed a sharp drop in jobless claims.
US weekly jobless claims fall as labour market recovering
According to US Labour Department data, US initial claims for state unemployment benefits declined 7,000 to a seasonally adjusted 411,000 during the week that ended on June 19, however, claims have still been hovering well above a 200,000-250,000 range widely seen as a sign of a salubrious labour market.
Continuing claims dropped 144,000 to 3.390 million during the week that ended on June 12. Meanwhile, referring to a speedy recovery in US labour market, a chief economist at FWDBONDS in New York, Chris Rupkey said following the announcement, “It looks like the economy continues to astound us with the speed and strength of the recovery from what is turning out to be the quickest recession in history. ”