US jobless claims ticks up to 373,000

WASHINGTON (AP) – The number of Americans filing for unemployment benefits rose slightly last week even while the economy and the job market appear to be rebounding from the coronavirus recession with sustained energy.

Thursday’s report from the Labor Department showed that jobless claims increased by 2,000 from the previous week to 373,000. Weekly applications, which generally track the pace of layoffs, have fallen steadily this year from more than 900,000 at the start of the year. The four-week average of applications, which smooths out week-to-week volatility, is now 394,500 — the lowest such level since the pandemic erupted in March of last year.

The rollout of vaccinations is driving a potent economic reopen, employers struggle to fill jobs and consumers emerge from months of lockdown to travel, shop and spend at restaurants, bars, retailers and entertainment venues.

In the first three months of the year, the government has estimated that the economy expanded at a brisk 6.4% annual rate. In the April-June quarter, the annual rate is thought to have reached a sizzling 10%. And for all of 2021, the Congressional Budget Office has projected that growth will amount to 6.7%. That would be the fastest cal- endar -year expansion since 1984.

The economy is recovering so quickly that many compa- nies can’t find workers fast enough to meet their increased customer demand. On Wednesday, the government said that U.S. employers post-ed 9.21 million jobs in May, the most since record-keeping began in 2000.

And in June, employers added a strong 850,000 jobs, and hourly pay rose a solid 3.6% compared with a year ago — a sign that companies are being compelled to pay more to attract and keep work- ers.