US jobless claims, proxy for layoffs, at fresh pandemic low

US jobless claims fell to 364,000 last month, the lowest reading in 16 months as the labour market continues to heal.

The United States labour market delivered a welcome surprise on Thursday. The number of Americans filing claims for state unemployment benefits fell by 51,000 last week to a fresh pandemic low of 364,000, the US Department of Labor said. The number was better than many economists were expecting and signals that the US jobs market is continuing to heal as coronavirus vaccination rates climb, business-sapping COVID-19 restrictions roll back, and American consumers – whose spending drives some two-thirds of US economic growth – come out of hibernation.