US jobs market shows signs of improvement but challenges ahead

Weekly jobless claims tumbled by 111,000 last week to three-month low, as demand for US goods rose strongly in January.

Fewer people in the United States filed new claims for unemployment benefits last week amid falling COVID-19 infections but the near-term outlook for the labour market is unclear after winter storms wreaked havoc in southern states earlier this month. Still, the decline in claims to a three-month low reported by the Department of Labor on Thursday suggested the jobs market was slowly regaining traction, catching up with the broader economy, after hitting a pothole in late 2020. Other data showed a solid increase in demand for US-manufactured goods in January. The reports followed on the heels of news last week that retail sales increased by the most in seven months in January.