The number of Americans filing new claims for unemployment benefits fell last week as the labor market recovery from the coronavirus pandemic gained momentum as the economy reopened.
However, the lack of workers willing to return to work may hinder faster job growth in the near term.
The US Department of Labor said today, Thursday, that total government unemployment benefits filed for the first time fell by 7,000 to the 411,000 level for the week ending June 19, 2021.
Economists polled by Reuters had forecast 380,000 orders in the latest week. Applications have fallen from a record 6.149 million in early April 2020. However, the number of applications is still well above the 200,000-250,000 range considered in line with a robust labor market.
On the other hand, a separate report by the US Department of Commerce on Thursday confirmed an acceleration in economic growth in the first quarter thanks to significant fiscal stimulus.
In its estimation, the government said GDP increased at an annual rate of 6.4% in the previous quarter. The economy witnessed a growth of 4.3% during the last quarter of last year.
The growth rate for this quarter (second quarter 2021) is expected to reach nearly ten percent.