SHARP DROP IN APPLICATIONS FOR UNEMPLOYMENT BENEFITS IN THE US
According to the US Department of Labor, a sharp drop in the number of applications for unemployment benefits was recorded in the country last week. The indicator fell to the lowest level since the beginning of the spread of coronavirus infection, when at the end of the week to March 14 last year, the number of applications for benefits amounted to 256 thousand. According to the published data, the number of such applications at the end of last week amounted to 576 thousand, having decreased by 193 thousand compared to the figure a week earlier. According to forecasts of economists, the number of applications was expected at the level of 700 thousand.
The drop in the indicator was made possible by the positive impact of the incentives introduced by the US authorities to support the economy. In addition, the gradual lifting of restrictions on containing the pandemic through accelerated vaccination contributes to the strengthening of business activity, which has a positive impact on the labor market, the recovery of which is gaining momentum. At the same time, the ministry is set for a long way to restore employment in the country, as the number of applications for unemployment benefits is still significantly higher than the pre-crisis level.