Big drop in new jobless claims: feds

The number of Americans seeking unemployment payments fell last week to 498,000, the lowest since the pandemic struck 14 months ago and a sign of the job market’s growing strength as businesses reopen and consumers step up spending.

Thursday’s report from the Labor Department showed that applications declined 92,000 from a revised 590,000 a week earlier. The number of weekly jobless claims — a rough measure of the pace of layoffs — has declined significantly from a peak of 900,000 in January as employers have ramped up hiring.

At the same time, the pace of applications is still well above the roughly 230,000 level that prevailed before the viral outbreak tore through the economy in March of last year.

As vaccinations have been more widely administered, restrictions on businesses have gradually lifted and consumers have become more willing to travel, shop and dine out, stronger spending has boosted hiring, slowed layoffs and accelerated growth.

The economy grew last quarter at a vigorous 6.4% annual rate, with expectations that the current quarter will be even better.

The rapid turnaround has led many businesses, especially restaurants and others in the hospitality industry, to complain that they can’t find enough workers to fill open jobs. Some other employers are raising pay to attract applicants.