U.S. jobless claims fall to 364,000

The number of Americans applying for unemployment aid fell again last week to the lowest level since the pandemic struck last year.

It is further evidence that the job market and the broader economy are rebounding rapidly from the coronavirus recession.

The U.S. Department of Labor reported Thursday that jobless claims dropped by 51,000 to 364,000. Applications for unemployment benefits have fallen more or less steadily since the year began.

The rollout of vaccines sharply has reduced new COVID-19 cases, giving consumers the confidence to shop, travel, eat out and attend public events as the economy recovers.

Applications for unemployment benefits have now fallen in 10 of the past 12 weeks.

"As life normalizes and the service sector continues to gain momentum, we expect initial jobless claims to remain in a downtrend,'' said Joshua Shapiro, chief U.S. economist at the consulting firm Maria Fiorini Ramirez.

All that pent-up spending has generated such demand for workers, notably at restaurants and tourism businesses, that many employers have been struggling to fill jobs just as the number of posted openings has reached a record high.

But many economists expect hiring to catch up with demand in the coming months, especially as federal unemployment aid programs end and more people pursue jobs.

Despite significant improvement, claims remain high by historic standards. Before the pandemic flattened the economy in March 2020, the weekly figure typically numbered around 220,000.

New claims in Iowas

In Iowa, new claims increased in the week ending June 26, rising from 1,830 to 2,019. Continuing claims fell, though, from 22,883 to 20,880.

Linn County's new claims jumped from 129 to 171 while Johnson County's new claims decreased from 137 to 111.

Independent contractors and self-employed were the largest source of new claims across the state with 409, followed by manufacturing with 285, construction with 168, and health care and social assistance with 132.

The statewide numbers only include people actively seeking work and filing for state unemployment benefits. Iowa stopped participating in federal unemployment programs on June 12.

Numbers released by the U.S. Labor Department Thursday showed 28,030 Iowans filed for Pandemic Unemployment Assistance or Pandemic Emergency Unemployment Compensation in the final week of Iowa's participation in the programs.