U.S. initial jobless claims drop for fourth straight week to 406,000

WASHINGTON, May 27 (Xinhua) -- Initial jobless claims in the United States dropped for a fourth straight week to 406,000, a new low since the COVID-19 pandemic ravaged the labor market early last year, the Labor Department reported Thursday.

In the week ending May 22, the number of Americans filing for unemployment benefits decreased by 38,000 from the previous week's unrevised level of 444,000, according to a report released by the department's Bureau of Labor Statistics.

This is the lowest level for initial claims since March 14, 2020 when it was 256,000, the report noted.

The four-week moving average, a method to iron out data volatility, decreased by 46,000 to 458,750.

The latest report also showed that the number of people continuing to collect regular state unemployment benefits in the week ending May 15 decreased by 96,000 to reach 3.64 million, after increasing by 98,000 in the previous week.

Meanwhile, the total number of people claiming benefits in all programs -- state and federal combined -- for the week ending May 8 decreased by 175,255 to reach 15.8 million, as the country continues to grapple with the fallout of the pandemic.

More than 20 states have announced they will exit the federal unemployment programs as early as June, a few months before the expiration in September. The federal aid includes an extra 300 U.S. dollars weekly unemployment benefits on top of state benefits.

Governors in these states, as well as the U.S. Chamber of Commerce, have argued that such supplemental benefits from the federal government keep people from returning to work, leading to worker shortages.

U.S. Treasury Secretary Janet Yellen, however, recently refuted these arguments, saying that concerns over caregiving responsibilities during the pandemic are still important reasons why some people are unable to return to work.