US weekly jobless claims hit 13-month low; home sales tumble

WASHINGTON: The number of Americans filing new claims for unemployment benefits fell to a 13-month low last week, suggesting layoffs were subsiding and strengthening expectations for another month of blockbuster job growth in April as a re-opening economy unleashes pent-up demand.

While the labour market recovery is gaining speed, red flags are emerging in the housing market, the economy’s star performer during the COVID-19 pandemic. Sales of previously-owned homes tumbled to a seven-month low in March as prices jumped to a record high amid an acute shortage of houses, other data showed on Thursday. Realtors warned that expensive homes could become a permanent feature of the market, worsening inequality.

Even as the economy is booming and the labour market scars are healing thanks to massive public aid from the government and increased COVID-19 vaccinations, there are still 17.4 million people collecting unemployment checks.

Initial claims for state unemployment benefits decreased 39,000 to a seasonally adjusted 547,000 for the week ended April 17, the lowest since mid-March 2020, the Labour Department said.

The latest Labour Department data on first payments show only a fraction of claims were successful over the past months.

The weekly subsidy and the Pandemic Unemployment Assistance (PUA) program will run through Sept. 6. Claims jumped to a record 6.149 million in early April 2020. In a healthy labour market, claims are normally in a range of 200,000 to 250,000.

Including the PUA program, 699,798 people filed claims last week, squeaking below 700,000 for the first time since the pandemic started.