US weekly jobless claims fall to the lowest level in nearly 15 months

[WASHINGTON] The number of Americans filing new claims for unemployment benefits fell last week to the lowest level in nearly 15 months as the pandemic's easing grip on the economy continues to boost domestic demand.

Initial claims for state unemployment benefits totalled a seasonally adjusted 376,000 for the week ended June 5, compared with 385,000 in the prior week, the Labor Department said on Thursday. That was the lowest since mid-March 2020 when the first wave of Covid-19 infections barrelled through the country, leading to closures of nonessential businesses.

Claims have now declined for six straight weeks. Layoffs are abating, with employers scrambling for labour as millions of unemployed Americans remain at home because of trouble securing child care, generous unemployment benefits and lingering fears of the virus even though vaccines are now widely accessible.

Economists polled by Reuters had forecast 370,000 applications for the latest week.

At least half of the adult US population has been vaccinated against the virus, allowing for broader economic re-engagement. But the pent-up demand unleashed by the resumption of business operations is straining the supply chain and fanning inflation pressures.

REUTERS