U.S (Washington Insider Magazine) -WASHINGTON – The number of Americans asking for unemployment benefits fell to its lowest level in 52 years last week, providing more indication that the United States’ labor market is rebounding from the slump created by last year’s epidemic, which hit hard in the U.S. beginning March 2020.
In the week ending Nov. 27, less than two million Americans were receiving regular unemployment benefits. Weekly claims, a proxy for layoffs, have been consistently declining for most of the year. They have already fallen below the 220,000-per-week level that was usual before the coronavirus epidemic hit the U.S. economy.
Employers shed a stunning 22.4 million jobs in March and April of last year.
Massive government support and the introduction of vaccinations contributed to the revitalization of the job market. Since April of last year, the United States has restored 18.5 million employments. However, the economy is still 3.9 million jobs short of where it was in February 2020, and its prospects are still vulnerable to COVID variations such as omicron.
Last Monday, the Labor Department announced that businesses created a lackluster 210,000 jobs in the previous month. However, the poll found that the unemployment rate had dropped to a historic low of 4.2 percent, down 0.4 percent from October.
In addition, the Department of Labor said on Wednesday that firms advertised a near-record 11 million job opportunities in October. It also stated that 4.2 million individuals resigned from their employment in September, which is less than the September record of 4.4 million, indicating that they are confident enough in their prospects to hunt for something better.
Until Sept. 6, the federal government bolstered state unemployment insurance systems by paying an additional $300 per week and extended benefits to gig workers and individuals who had been out of work for six months or longer. As a result, including government programs, the number of Americans getting unemployment assistance reached over 33 million in June 2020.
The Labor Department said that unemployment claims fell by 43,000 to 184,000 last week, the lowest level since September 1969. In addition, the four-week moving average slipped below 219,000, the lowest level since the epidemic struck the United States in March 2020.
According to Stephen Stanley, chief economist at Amherst Pierpont Securities, seasonal volatility contributed to last week’s dip as the Labor Department modified the data to reflect employment market variations around the holidays.
