US unemployment claims fall to new pandemic low

US state unemployment insurance fell last week to a new pandemic low indicating economic recovery in US.

In the week ended July 10, unemployment claims decreased by 26,000 to 360,000, data by Labor Department showed.

The fell in the numbers indicate economic recovery in US as companies get back to full capacity and travel and leisure demand also increasing.

The claims are still above pre-pandemic levels and employers are still struggling to find qualified workers which may affect the pace of recovery.

 “Conditions in the labor market have continued to improve, but there is still a long way to go,” Federal Reserve Chair Jerome Powell told the House Financial Services Committee Wednesday, reported Bloomberg.

“Job gains should be strong in coming months as public-health conditions continue to improve and as some of the other pandemic-related factors currently weighing them down diminish,” he said.

Many governors in US have planned to end enhanced federal unemployment benefit programs on speculations of the benefits preventing the growth in jobs.

(With inputs from Bloomberg)

Picture Credits: Reuters