Better-than-expected US Unemployment Claims

Better-than-expected US Unemployment Claims

The unemployment rate is still almost double compared to the pre-pandemic level

A silver lining might be in sight for the US economy as the latest report from the Department of Labor showed figures below the +1 million published for the past months.

In the last week, 963,000 people filed for unemployment benefits for the first time. The figures came in better than the 1,120 million expected. According to specialists, it is a sign of economic recovery from the pandemic. The last time the claims were under million, was on March 14 – 282,000.

At a state level, the most significant drops in unemployment claims were reported in Florida - -23,180 and New York - -21,905.

The release comes after the non-farm payrolls report, which showed that nearly half of the jobs lost during the pandemic returned on the market. Currently, the unemployment rate is 10.1%. The pre-pandemic rate was 3.5%.

The American benchmarks were all over the place after the report. USA500 lost 0.3%, while USA30 fell 0.4%. TECH100 added 0.3%. In Europe, the pan-continental Europe50 slid 0.6%.

Sources: forexfactory.com, cnbc.com, wsj.com

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