Unemployment Claims Reach Pandemic Low As Economic Recovery Continues

According to the latest report from the Department of Labor (DOL), the number of Americans seeking unemployment benefits dropped last week to 406,000 as the nation’s economic recovery continues. Unemployment applications declined 38,000 from 444,000 a week earlier.

The decline in applications reflects a swift rebound in economic growth. More Americans are venturing out to shop, travel, dine out and congregate at entertainment venues. All that renewed spending has led companies to seek new workers, which helps explain why a record number of jobs is now being advertised,” The Associated Press reported.

The number of Americans seeking unemployment benefits has dropped by more than half since January, when the nation was in the midst of a particularly deadly wave of the virus.

The news comes as 24 GOP-run states are moving to slash unemployment benefits entirely, citing a labor shortage and lack of hiring. The move could cost some individuals all of their income.

DOL has said that it probably won’t be able to pay out unemployment to workers who will be cut off early.

The National Employment Law Project has attempted to make the case that DOL is obligated to intervene and ensure money ends up in the hands of the jobless.

“All States currently have active CARES agreements. Recently several States announced they are terminating their agreements early — stopping the federal assistance to unemployed workers in their State. This leaves DOL in a quandary because they are obligated to provide assistance to “any covered individual” for the duration of the program,” the agency wrote in a memo earlier this month.