May 27. US labor market: what's the news?
According to the US Department of Labor, the number of Americans who filed new applications for unemployment benefits fell more-than-expected last week to 406 thousand. Economists predicted 425 thousand applications. Last week, the number of requests was fixed at the level of 478 thousand.
The decline came mainly on the back of fewer layoffs, as companies are in dire need of workers to meet the growing demand driven by the rapidly recovering economy. What's more, the pandemic-related business restrictions have been lifted as more than half of the US adult population is fully vaccinated against the coronavirus.
And while the number of applications still far exceeds the 200,000 to 250,000 range considered compatible with healthy labor market conditions, they fell from a record 6.149 million in early April 2020.
23 states, including Florida and Texas, have announced the end of federal government-funded unemployment programs next month. These programs include a $300 weekly subsidy that businesses say discourages unemployed people from finding work.