A restaurant places a “Now Hiring” sign in front of its store in Miami, Florida, U.S., March 5, 2021.
The U.S. Department of Labor reported Thursday (May 20) that first-time jobless claims continued to fall in the week ending May 15, totaling 444,000, a record low since the epidemic. At the same time, 22 states across the U.S. have decided to halt all federally funded, outbreak-related unemployment benefits this summer. Showing that the U.S. job market is strengthening as consumers are once again spending freely, viral infections are declining and business restrictions are easing.
The Labor Department said the number of people filing for unemployment benefits each week has been steadily declining since the beginning of the year. The number of people filing for unemployment benefits fell by 34,000 to444,000 last week from 478,000 a week earlier (revised). This was lower than the 452,000 estimated by economists.
About 16 million people had been receiving unemployment benefits continuously for the week ended May 1, down from 16.9 million the previous week. This indicates that some Americans who have been receiving assistance have found new jobs.
According to the statistics, as of noon May 20, Alabama, Alaska, Arizona, Arkansas, Georgia, Idaho, Indiana, Iowa (Iowa), New Hampshire, Mississippi, Missouri, Montana, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas Utah, West Virginia and Wyoming, all plan to stop paying $300 a week in federal unemployment benefits starting in June to encourage the unemployed to return to work amid a flood of job openings and business hiring.
Regular state unemployment assistance, however, will continue to be paid. Florida and Kansas are considering whether to join the discontinuation. About 3.5 million people will see their benefits reduced in the coming months, according to the Oxford Economics Institute.
In addition, 35 states have reinstated a rule that requires recipients of unemployment benefits to submit proof of job search to continue receiving benefits.
With the economy quickly recovering from the widespread recession and consumers showing more confidence, most economists believe the economy could expand by 7 percent this year, which would equate to the fastest annual growth in more than 35 years.
Despite the spike in inflation caused by widespread supply shortages during the recovery, Federal Reserve officials have stressed that they believe the acceleration in prices is only temporary, or that they will discuss cutting back on their approach to stimulating growth in the future.
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