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Record Lowest US Unemployment Insurance Claims, Tapering Off Closes | Simple Blogger Tutorial


simplebloggertutorial.com The Central Bank of the United States (US), The Federated Reserve (Fed) seems to be getting closer to tapering off along with the improving labor market.  Unemployment insurance claims in the US until the 2nd week of August fell to the lowest level during the Covid-19 outbreak.


 The report on jobless claims data, which fell in the second week of last year, strengthened the US central bank's signal to accelerate the tapering off method, aka tightening stimulants.  The economy is considered to have achieved its goal when looking at inflation data and showing developments in the development of tasks that are almost satisfying.


 "As long as the economy develops broadly as expected, this may be a good time to start reducing asset-buying movements this year," the US Federal Reserve said in the minutes, as taken from CNBC, Friday (20/8).


 Fed Governor Jerome Powell at a journalists' meeting last month explained that the Fed will pay attention to several parameters, one of which is the reconditioning of the labor market before pulling the gas tapering off.


 The launch of the minutes of the open market committee (FOMC) meeting on Wednesday (18/8) morning showed that the majority of Fed officials agreed to start reducing government bond purchases by US $ 120 billion every month.  This method will be implemented as soon as possible before the end of this year.


 Citing CNBC, the Department of Labor gave a report on jobless claims for the 2nd week of this month, which after August 14 reached 348,000.  This figure is down 29 thousand from the previous week and lower than the Dow Jones prediction of 365 thousand.


 This data is updated once a week.  The lowest level that was achieved was in the 2nd week of March 2020, around 256 thousand claims.  A week later, jobless claims rose by 2.9 million which indicates the Covid-19 outbreak is starting to affect the state of employment.


 Jobless claims reached a record high in the first week of April last year, reaching 6.1 million.  The figure then continued to decline until the end of the year, but had shown a slight increase in the early weeks of 2021 when the 2nd wave of Covid-19 occurred.


 The Department of Labor wrote, the number of claims fell below 500 thousand starting in the early week of May as the number of Covid-19 cases in the US began to improve.  However, this is still far from the level before the outbreak.


 In addition, the reduction in unemployment insurance claims continues.  The number decreased to 2.82 million, a decrease of 79 thousand from the previous week.  This figure is the lowest on record so far as the Covid-19 outbreak, and the second time the number is below three million.


 The number of continuing jobless claims still wrote the normal figure of 1.8 million in the 2nd week of March 2020. The number rose in the 3rd week to 3.1 million and reached its highest point in the 2nd week of May 2020 of around 23.1 million.


 The majority of claim reductions came from Texas, which fell 8,311 even though the region posted its highest daily addition of Covid-19 cases in recent weeks.  The reductions followed by the state of Illinois to 3,577 and Michigan lower at 2,188.


 Overall, the reduction is good news for the labor market.  In particular, the reduction was followed by a rise in non-farm wages of 2.five million during the final three months, and the unemployment rate declined to 5.4% from 6.3% at the beginning of the year.


 Even though the data on jobless claims and continuation claims are decreasing, this achievement has not come close to reconditioning to normal levels before the COVID-19 outbreak.  There is still a large gap where 8.7 million of the workforce were looking for work last month, even though the government claims that there are more than 10 million open job vacancies.


 Some economists have witnessed many arguments over the inability of the labor market to return to normalcy.  Concerns about the Delta variation of Covid-19 still haunt the reconditioning process.  On the other hand, employees who demand higher salaries can also move the company not to attract new workers.


 Salaries have increased in response to the current situation, with average hourly earnings up 4% year over year in July.  Last month's increase was even the highest on record since March 2007.




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