US weekly jobless claims decline to fresh pandemic low

The US economy is reopening, but pent-up demand is running up against supply constraints that threaten to slow recovery.

The number of Americans filing new claims for unemployment benefits dropped further below 500,000 last week, but jobless rolls swelled in early May, which could temper expectations for an acceleration in employment growth this month. Other data on Thursday showed factory activity in the mid-Atlantic region growing at a significantly slower pace this month, likely because of shortages of labour and raw materials. A measure of employment dropped for factories in the region that covers eastern Pennsylvania, southern New Jersey and Delaware. But businesses boosted hours for workers. The United States economy is reopening after being severely disrupted by COVID-19 for more than a year. But pent-up demand unleashed by the broadening economic re-engagement is pushing against supply constraints, threatening to slow the recovery from the coronavirus pandemic recession, which started in February 2020.