The number of Americans filing new jobless claims rose unexpectedly last week, but this increase is likely to reduce labor market conditions that are improving rapidly as more parts of the economy reopen and fiscal stimulus begins.
The Labor Ministry said on Thursday that initial claims for government unemployment benefits totaled 744K seasonally adjusted for the week ending April 3, compared to 728K the previous week.
The government reported last week that the economy created 916K jobs in March, the biggest in 7 months. Job opportunities rose to their highest level in two years in February. However, employment is still 8.4 million less than its peak in February 2020.
The labor market regained its place after a tumble in December, thanks to a huge pandemic rescue package provided by the White House worth $ 1.9 trillion and the acceleration of vaccinations against the Coronavirus, which allows more service companies to resume their operations.