The number of Americans submitting new claims for unemployment benefits hit its lowest level since the pandemic hit last week in tandem with a recovery in brisk economic activity and an increase in vaccinations. This indicates that the employment sector is recovering.
Initial claims for unemployment benefits were 348,000 for the week ending Aug. 14, according to a report released by the Department of Labor on Thursday. This figure is a positive one as unemployment claims have dropped by 29,000 from the previous week from 365,000 as the job market grows in line with economic growth.
The last lowest reading since the pandemic was on March 14, 2020 where the Covid-19 pandemic had just hit the entire world causing the economy to be in a phase of recession.
Since then, the number of unemployed Americans has increased by 22 million and the unemployment rate has jumped to 14.8%. However, this year the employment sector has been on track to recover.
Total claims continued to show a sharp decline with a decline of 79,000 to 2.82 million.The US dollar was still trading strong against major currencies with a strong 0.23% to 93.358. .
At the same time, the market is still taking a cautious stance following the contagion of the Delta Covid-19 variant which has caused some areas to reintroduce restrictions.
