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A new pandemic-era low for the US unemployment claims

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Miguel A. Rodriguez
Miguel A. Rodriguez
06 May 2021
The labour market’s recovery strengthens, with figures reaching a new low

Last week’s number of unemployment claims likely set the tone for a new pandemic-era low as the figures came in at 553,000.

The latest report from the US Department of Labour revealed that in the past week, 498,000 people filed for the first time for unemployment, hitting a fresh pandemic-era low. The numbers came lower than the 540,000 expected. As the mobility restrictions continue to be lifted, the improvement’s pace has accelerated in the past few weeks. Moreover, the fact that the US is currently vaccinating more than 2 million people daily helped.

In a separate report, the non-farm business labour productivity (the annualized change in labour efficiency when producing goods and services, excluding the farming industry) reached 5.4% in the first quarter, above the 4.3% estimated.

However, experts believe that there is still a long way to go for the labour market to heal from the pandemic’s impact fully.

Now all eyes are on tomorrow’s non-farm payrolls for April. Economists believe that the economy added another 1 million jobs, mainly in the hospitality sector.

Following the reports, the dollar-driven instruments such as USA30 and USA500 added 0.10% and 0.07%, respectively. At the moment of writing, the Dollar Index is trading 0.30% lower at 91.03.

Sources: cnbc.com, forexfactory.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.