The number of people in the United States who applied for unemployment assistance fell last week, a sign that layoffs declined and the job market is improving.
The Labor Department announced Thursday that claims for unemployment benefits were down 7,000 from the previous week, to 411,000.
The number of applications has been falling consistently this year, from about 900,000 a week in January. The number generally reflects the pace of layoffs.
As the pandemic subsides, states and cities are lifting more restrictions on businesses – California fully reopened on June 15 – and the economy gains traction with consumers traveling, going more to restaurants, movie theaters and amusement parks.
Growth could exceed the annual rate of 10% in the April-June quarter, according to the Federal Reserve Bank of Atlanta.
With many companies desperate to hire, some states are beginning to cut back various pandemic-related unemployment assistance programs in response to complaints from businesses that assistance makes it difficult for them to find workers.
Starting this month, 26 states will end an extra $ 300 federal weekly unemployment pay and 22 of those states will also cut assistance to the self-employed, contract workers and those who have been out of work for more than six months.
The extra federal payment of $ 300 ends nationally on September 6.
Economists at Bank of America have estimated that those who earned less than $ 32,000 a year in their previous jobs may receive more in unemployment assistance with the additional $ 300.
The expansion of unemployment benefits made it possible for millions of the self-employed and contract workers to receive help for the first time.
Four states – Alaska, Iowa, Mississippi and Missouri – stopped weekly payments of $ 300 last week. Alaska also suspended the two programs that covered the self-employed and the unemployed for more than six months.
–
