U.S. Unemployment Claims Drop to Lowest Level in 52 YearsOver a year after the passage of Biden’s American Rescue Plan, and five months after he signed the Bipartisan Infrastructure Law, unemployment continues to fall.
By Main Street Sentinel Staff
The Department of Labor reports that the number of new applications for unemployment benefits fell again during the second week of April. The U.S. unemployment rate is now at its lowest level since February 21, 1970 – 52 years ago.
The numbers are another sign that demand for workers is still near record highs. As a result, employers are continuing to offer workers better pay; a survey conducted by the Philadelphia Fed found that 65 percent of companies intend to raise wages and compensation more than they’d planned to at the beginning of 2022.
Experts have attributed much of the decline in unemployment to President Joe Biden’s American Rescue Plan. According to Moody’s Analytics, “The American Rescue Plan is responsible for adding well over 4 million more jobs in 2021, and the economy is currently on track to recovering all the jobs lost in the pandemic by the second quarter of this year.” Meanwhile, investments from Biden’s Bipartisan Infrastructure Law, which was passed in November, are projected to create an average of 2 million jobs per year over the next decade.
Economist Staurt Hoffman told Reuters: ”The labor market remains in excellent shape as the spring quarter begins.”