More and more companies need labor to meet the growing demand.
The number of applications for unemployment benefits in the United States last week fell more than expected: employers began to lay off fewer people, and more companies need labor to meet growing demand amid a rapid economic recovery.
The US economy, which achieved its second-highest growth rate in the first quarter since the third quarter of 2003, continues to gain momentum. Other data released on Thursday showed that business spending on equipment accelerated in April.
Last week, the number of initial claims for unemployment benefits fell by 38,000 to a seasonally adjusted 406,000, the Labor Department said. This was the lowest figure since mid-March 2020. For three weeks in a row, the number of applications did not exceed 500,000.
Economists polled by Reuters had forecast 425,000 referrals.
More than half of adults in the United States are fully vaccinated against COVID-19, which is why the business activity is growing and businesses need more labor.
The labor shortage is attributed to the allowances that were introduced to protect people from the effects of the pandemic. Republican governors in 23 states, including Florida and Texas, have announced the end of federal government-funded allowances. US markets opened higher on Thursday. The dollar is stable against a basket of currencies. Treasury bond prices declined.