Unemployment insurance claims fall below 500,000, the lowest since the pandemic started

Unemployment claims below 500 thousand. The number of weekly claims for unemployment benefits in the United States fell to 498,000 last w...

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  • Unemployment claims below 500 thousand. The number of weekly claims for unemployment benefits in the United States fell to 498,000 last week
  • This is the first time since the coronavirus pandemic hit the economy in March that the weekly number of applications has been below 500,000.
  • The economy grew at an annualized rate of 6.4% in the first quarter of 2021

Unemployment below 500 thousand. The number of weekly applications for unemployment benefits in the United States fell to 498,000 last week, compared with 590,000 procedures started the previous week, the Labor Department’s Bureau of Labor Statistics (BLS) reported this Thursday, cited by Efe.

This is the first time since the coronavirus pandemic hit the economy in March that the weekly number of applications has been below 500,000. The average number of applications in four weeks, a measure that compensates for the weekly ups and downs, was 560,000 processes compared to 621,000 the previous week.

unemployment below 500 thousand
Twitter US Labor Department

Unemployment below 500 thousand:

According to the BLS, in the week ending April 10, there were 3.67 million people receiving this benefit, compared to 3.7 million in the previous week. The weekly number of requests reached an unprecedented peak at the end of March 2020, when 6.8 million requests were received caused by the covid-19 pandemic.

Requests for unemployment benefits decreased throughout the year, partly as a result of the economic stimulus approved by the government. The unemployment rate, which jumped to 14.4% in April 2020, has also been declining, standing at 6% last March.

Unemployment below 500 thousand: US grows 6.4% at the beginning of 2021

economy accelerates
AP

The national economy started the year with solid growth, an annualized rate of 6.4% in the first quarter of 2021, boosted by the enormous fiscal stimulus launched by the government after the acute crisis caused by the covid-19 pandemic, reported this Thursday the Bureau of Economic Analysis (BEA).

It is the first of his three calculations on economic activity at the start of the year, after the annual contraction of the gross domestic product (GDP) of 3.5% registered in 2020. The evolution of GDP between January and March was 1.6% compared to the previous quarter, the Efe news agency reported.

Unemployment below 500 thousand: recovery, checks and reopening

Photo: Shutterstock

“The increase in the first quarter reflected the continued economic recovery, the reopening of businesses, and the continued response of the government related to the pandemic,” the quarterly report noted. These include direct transfers of up to $ 1,400 per citizen, the extension of unemployment benefits and aid to small and medium-sized enterprises.

US President Joe Biden, who has proposed a multi-million dollar plan to invest in infrastructure and social protection programs, has assured that US growth in 2021 could exceed 6% per year, something that has not happened in the past. country since the 1980s.

Unemployment below 500k: consumer spending skyrockets

The US GDP evolution data indicates that “the economy is ready to run and it will be like an explosive year,” in the words of Mark Zandi, chief economist at Moody’s Analytics. “Obviously, the American consumer is the engine of the train and businesses are investing heavily,” Zandi stressed in a note to clients.

Consumer spending in the US, which accounts for two-thirds of the country’s economic activity, rose 10.7% in the first quarter of the year compared to 2.3% in the previous period. Likewise, imports continued their rise, with a rise of 5.7%, while exports fell 1.1%.

Unemployment below 500 thousand: applications seem to stay lower montana unemployment benefit

Photo: Getty. The report of weekly applications for unemployment benefits was also released on the date, which delved into the positive trend in the first world economy. Unemployment benefit claims in the United States fell to 553,000 last week, marking the third consecutive week in more than a year in which the weekly number of claims has been below 600,000.

The unemployment rate, which jumped to 14.4% in April 2020, has also been falling to 6% in March. The extraordinary monetary stimulus provided by the Federal Reserve (Fed) also contributes to the economic rebound. “Amid progress in vaccination and strong policy support, indicators of economic activity and employment have strengthened,” the Fed said in its statement issued Wednesday, which did not change monetary policy.

Economic data more than forecasts

The US central bank has been using reference interest rates between 0% and 0.25% for more than a year, after an abrupt cut in March 2020. It also maintains the monthly purchase rate of US Treasury bonds. US $ 80 billion and mortgage-backed assets an additional 40 billion since last June.

In recent weeks, members of the central bank have remarked that they will focus on economic data, rather than forecasts, before changing interest rates or beginning to withdraw from bond purchases.

Good data that must be repeated in the coming months

montana unemployment benefit
Photo: Getty

“We are in the early stages where we see this good data. We are going to need repeated months like this before we can distinguish optimism about the future from that future being fulfilled, “said Mary Daly, president of the San Francisco Fed last week in a virtual meeting with journalists.

The next meeting of the central bank, which has a dual mandate to promote full employment and price stability, will take place on June 15 and 16.

The post Unemployment benefit claims fall below 500,000, the lowest since the pandemic appeared first on Hispanic World.

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