Initial claims for unemployment benefits in the United States were at their lowest level since March 2020, the Department of Labor (DOL) reported.

For the week ending June 26, the seasonally adjusted initial claims advance figure was 364,000, a decrease of 51,000 from the revised level of the prior week.

Also, this is the lowest level for initial claims since March 14, 2020, when it was 256,000.

The DOL also indicated that the advanced seasonally adjusted insured US unemployment rate was 2.5% for the week ending June 19, unchanged from the revised rate of the prior week.

Unemployment in the United States

The advance number for seasonally adjusted insured unemployment for the week ending June 19 was 3,469,000, an increase of 56,000 from the revised level of the prior week.

According to the World Bank’s outlook, the US economy is recovering faster than its peers from the pandemic shock, supported by greater amounts of fiscal relief.

On the one hand, rising personal income has boosted consumption, which is expected to stabilize as households reduce their savings rate from historically high levels.

On the other hand, the signing of the American Rescue Act offered in March 1.9 trillion dollars in additional fiscal support, bringing the cumulative fiscal relief provided since the beginning of the pandemic to more than a quarter of GDP, an unprecedented level of support. in times of peace.

Vaccination is progressing at a solid pace and is expected to become widespread in mid-2021.

In total, the World Bank projects US growth to reach 6.8% in 2021, its fastest pace since 1984, reflecting additional large-scale fiscal relief and continued easing from pandemic restrictions.

It is then expected to soften to a still strong 4.2% in 2022 as the fiscal momentum begins to fade.