Jobless claims for the latest week fell by 42,000 in the latest week to 712,000 according to a new report from the Labor Department.
The move lower signals continued improvement in the economy as businesses begin to to higher. That said, claims are still running far higher than they were before the pandemic. In 2019 for example, claims averaged 218,000 per week.
It is anticipated that hiring will speed up as more of the population receives the coronavirus vaccine.
The President is expected to sign into law a $1.9 trillion in stimulus on Friday. It will provide $1400 direct payments to most Americans and allocate $300 per week from the federal government in unemployment benefits through September.
Economists believe the stimulus will result in a massive move higher for the U.S. economy. The Organization for Economic Cooperation and Development said this week that it anticipates a 6.5% increase in U.S. GDP as a result of the stimulus.
Meanwhile, many worry that the economy is at risk of getting “too hot” and that could result in inflationary pressures.