On Thursday, the US Labour Department said that the number of Americans filing for first-time state unemployment benefits rose marginally last week, however, continuing claims dropped in fresh sign of a gradual recovery in the labour market.
In point of fact, with more than 155 million Americans having been fully inoculated against the pandemic contagion, businesses had reopened at a much faster-than-anticipated pace over the second quarter, leading to analysts’ belief that the US economy might report a double-digit percentage point growth this year.
Nonetheless, a robust reopening of the US economy causing an abrupt high-tide in domestic demands had been met with a sweeping shortage of raw materials amid an intensifying supply chain disruption with businesses rushing on to a hiring spree to cope up with the demand-trend, eventually converging a gradual healing effect into the labour market.
On top of that, many Republican-led US states had scrapped a $300 per week in additional state unemployment benefits signed off into a law by the US President Joe Biden earlier in March in a bid to draw in more Americans into the labour market, which also had prompted an increase in available workers.
US initial jobless claims rise, continuing claims fall
According to US Labour Department data released earlier in the day, the number of Americans filing for state unemployment benefits for the first time on their lives, rose 2,000 to a seasonally adjusted 373,000 during the week that ended on July 3, while continuing claims dipped 145,000 to 3.339 million over the week that ended on June 26.
Meanwhile, referring to a momentarily tranquil US labour market, a JPMorgan economist Daniel Silver said following the data, “Through some of the noise in the data it still looks like the trend for filings keeps moving lower over time”.