The number of Americans filing claims for the first time for unemployment benefits fell last week as economic activity grew. Even so, analysts argue that the labor market will take years for the labor market to fully recover.
A report released by the Department of Labor today showed the total unemployment claims last week recorded a total reading of 648,000 claims for the week ended March 20. This reading was less than the expectations set by analysts at 730,000 and a decrease from the previous week of 781,000.
The $ 1.9 trillion Covid-19 pandemic stimulus package and increased vaccinations are expected to boost economic activity in March. Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell have issued statements and expressed confidence in the economy.
Adds Powell, this year will be a year of revival for the United States. After a year of pandemics, the number of unemployment claims remained above 665,000 claims. A healthy figure for total claims is in the range of 200,000 to 250,000.
Economists say it will take at least two years for the economy to offer back the jobs that have lost 22.4 million jobs since the pandemic.
On the other hand, U.S. GDP recorded an increase of 4.3% in the fourth quarter. The economy is forecast to grow by 7.5% in the first quarter.
