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Decreased requests for benefits and an improvement in the labor market..Is the US economy recovered?

Last update: 16 – Apr – 2021 10:22 am

The latest statistics in the United States of America indicate that jobless claims fell sharply last week, to less than 600,000, and are at their lowest levels since the start of the epidemic crisis in March 2020, reflecting a recovery in the world’s largest economy.

This coincides with the statements of US President Joe Biden on Thursday, who confirmed that “conditions are improving,” referring to the positive economic data that showed US retail sales rose the most in ten months in March, coinciding with the receipt of more government relief checks for Americans.

“There is still a long way to go, but America is coming back,” Biden told reporters in the Oval Office.

Between 4 and 10 April, 576,000 people were registered as unemployed, compared to 769,000 the previous week, according to data released Thursday by the Ministry of Labor. The number is better than analysts expected, as they estimated it to be 695,000.

This is the lowest level of unemployment benefits since March 14, 2020, when the number was 256,000, according to the Ministry of Labor.

The total number of beneficiaries of all aid programs due to loss of a job or income reached 16.9 million at the end of March, according to the latest available data.

The registration counter had witnessed an unexpected rise in the last two weeks to exceed 700,000 applications, after slowing in March at the start of the recovery.

But economic activity is starting to resume in the United States, at a time when one in four Americans received a vaccine against the Coronavirus.

The level of unemployment decreased in March, to 6%.

On the other hand, US factory production rebounded in March, amid strength in domestic demand, as car production surged despite a global deficit in semiconductor chips that forced some manufacturers to cut production.

On Thursday, the Federal Reserve said that manufacturing output jumped 2.7% last month, after falling 3.7% in February. Manufacturing production is still slightly below its pre-pandemic level.

Factory production increased at an annual rate of 1.9% in the first quarter of the year, after accelerating at a rate of 12.4% in the period from October to December.

A massive financial stimulus is feeding demand for goods amid a decline in inventories, which supports the manufacturing sector, which contributes 11.9% of the US economy.

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