WASHINGTON – A record low number of jobless claims in the U.S. suggests that the country’s economy is rebounding following the pandemic related recession.
According to a report from the Labor Department, the number of Americans applying for unemployment aid has reached a pandemic low of 364,000, a 51,000 person decrease.
This can be accredited to the significant decrease in new COVID-19 cases thanks to the success of the vaccine, giving consumers the peace of mind to travel, eat out and attend public events once again.
Some believe that the sudden increase in spending and the $300-a-week supplemental unemployment benefits have created a nationwide labor shortage in which employers are struggling to fill job openings. Economists expect to see this disparity lessen as federal aid programs related to the pandemic end.
Other causes of the gap could be difficulty finding child care, lingering fears of COVID-19, early retirements, a slowdown in immigration and a decision by some to find a new career.
The country however is moving in a good direction, with around 675,000 jobs added in the month of June. Though this is significant, the market is still 7 million jobs short from returning to pre pandemic levels.