Weekly Unemployment Benefit Claims in the United States Drop to Lowest Level Since Pandemic Start.

Weekly%20Unemployment%20Benefit%20Claims%20in%20the%20United%20States%20Drop%20to%20Lowest%20Level%20Since%20Pandemic%20Start.
source: www.usnews.com

Data on the recovery of the labor market represent an injection of optimism for the US economy.

The labor market data represents an injection of optimism for the US economy following the release on Tuesday of a disappointing report on retail sales that fell surprisingly 1.1% in July compared to June, a much more significant drop than analysts expected. Due in large part to the decline in car sales.

Weekly claims for unemployment benefits continued to decline in the United States in early August as government aid offered during the pandemic expires, even as the delta variant of the coronavirus threatens to slow the economic recovery.

For the moment, the excellent unemployment data was received coldly on Wall Street. But, like the rest of the world markets, this Thursday, the New York stock market registered losses, with investors most concerned about the imminent end of the Federal Reserve's stimulus programs and the spread of the delta variant of the coronavirus.

According to data released Thursday by the Labor Department, between Aug. 8 and Aug. 14, 348,000 people signed up for unemployment benefits after being laid off, the lowest level since the start of the pandemic.

Analysts had expected 370,000 new registrations, down slightly from the previous week. The data was revised up to 377,000 instead of 375,000.

The average of the last four weeks also fell to 377,750; it's the lowest level since the COVID abruptly paralyzed economic activity in March 2020.

Some 11.7 million Americans were unemployed at the end of July, according to the latest available figures.

The unemployment rate fell to 5.4% last month.

The labor market data represents an injection of optimism for the US economy following the release on Tuesday of a disappointing report on retail sales that fell surprisingly 1.1% in July compared to June, a much more significant drop than analysts expected. Due in large part to the decline in car sales.

For the moment, the excellent unemployment data was received coldly on Wall Street. But, like the rest of the world markets, this Thursday, the New York stock market registered losses, with investors most concerned about the imminent end of the Federal Reserve's stimulus programs and the spread of the delta variant of the coronavirus.