US Jobless Claims Drop to 406,000 - A Pandemic Low
According to a report released by the Labor Department on Thursday, 406,000 Americans claimed first-time jobless benefits over the last week, a 38,000 drop from the previous week and the lowest number since the start of the pandemic last year.
This is an encouraging sign that layoffs are slowing down because of an improving job market and that the economy is on a rebound.
Despite the positive trends, some businesses are having difficulty finding applicants for open job positions. Many Republican leaders believe this is because of the extra Covid-19 relief stimulus and 22 Republican-led states have acted to block the $300-a-week federal unemployment benefit saying that the extra money is discouraging the unemployed from seeking jobs. Florida and Kansas, two more Republican-led states, are also considering taking the same action.
Despite the positive trends, many economists are concerned that the sudden increase in consumer demand will lead to additional inflation (we have already experienced a spike in inflation this year), a concern that Wall Street also shares.
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