Dominating the economic news on Thursday 3rd June was the US Jobless Claims weekly figure dipping below 400,000 to levels not seen since before the pandemic hit the US.
According to data from the US Labor Department, initial claims for state unemployment benefits totalled a seasonally adjusted 385,000 for the week ended May 29, compared to 405,000 in the week before. That was the lowest US Jobless Claims weekly figure since mid-March 2020 when mandatory closures of businesses began impacting the economy.
The positive data also beat market expectations for 390,000 applications in the latest week.
US Initial claims have fallen from the record 6.149 million hit in early April 2020. They do however, still remain well above the 200,000 to 250,000 range that is regarded as consistent with healthy labor market conditions.
US Labor Market Accelerates
As the world’s largest economy starts to head into Summer, the latest set of figures are testimony to an improving economy. The coronavirus pandemic is subsiding due to an intensifying of the vaccinations program, enabling authorities to lift restrictions on businesses and hastening the economy’s reopening. The acceleration in reopening has led to soaring demand that is pushing against supply constraints.
According to a separate report by ADP Research Institute, companies in the US added 978,000 private payroll jobs in May, the most in almost a year.
Now, all eyes will be on Friday’s Labor Department employment report, which is expected to show the economy added 655,00 jobs last month. This, after rising only 266,000 in April.
