Unemployment claims declined to the lowest level since the coronavirus pandemic struck last spring, adding to signs the U.S. economic revival is picking up speed.
Jobless claims, a proxy for layoffs, fell to 576,000 last week from 769,000 a week earlier. That is the lowest weekly figure since March 2020. Claims remain higher than the pre-pandemic levels of around 220,000, but economists expect they will continue to drop as the recovery accelerates.
“We are seeing both a strong reopening and rehiring in the economy at this time,” said Kathy Bostjancic, economist at Oxford Economics. “It’s been faster than most economists expected.”
Several factors are converging to boost growth across the economy. Vaccination rates are powering consumer spending, governments are relaxing restrictions on businesses, and federal-stimulus funds are flowing through the economy.
U.S. employers added 916,000 jobs in March, and the jobless rate edged down to 6%, from 6.2% in February. Consumers are spending more on gyms, restaurants, hotels and other services that they had shunned over the past year. U.S. retail sales surged 9.8% in March from the month before, the largest monthly gain since last May, the Commerce Department reported Thursday.
