The labor sector recorded a positive development in 2021 with continued recovery from the previous week. The Department of Labor reported that the initial unemployment claim fell to 779,000 last week and the previous week's revised figure dropped to 812,000 from an initial estimate of 847,000.
Although unemployment claims fell from the highest reading of 6.867 million in March, the number recorded remained at a peak reading of 665,000 recorded during the financial crisis 2007-2009.
With the Covid-19 case soaring to daily highs in January and declining economic activity in the middle of the month, the labor market is still able to record a good performance.
The market hopes the economy can create more jobs last month as it did in the private sector. Private Payrolls has shown better performance to beat the estimates of economists which is a surplus of 174,000 jobs based on the ADP National Employment Report released just now.
The US dollar index continued to strengthen at the 91.380 exchange rate against major currencies driven by a more positive economic outlook.
The market is now starting to focus on the NFP data that will be released this Friday. Experts predict employment will increase by 50,000. The unemployment rate remained stable at 6.7%.
