According to the latest data released, the numbers of people filing for claims for jobless benefits have fallen in the previous week to about its lowest level in five years indicating that the US jobs market is gradually recovering.
The data released by the Labor Department on Thursday showed that initial claims for state unemployment benefits fell 12,000 to a seasonally adjusted 334,000. The number was the lowest number of initial claims since early May and near the level recorded at the beginning of the economic crisis in 2007. The total number of people receiving benefits under regular state programs increased 2,000 to 2.97 million during the week till 1 June, 2013.
The Labor Department said that the total number of jobs waiting to be filled fell to 3.76 million compared to 3.88 million in March, indicating that the employers are waiting to assess the impact of government spending cuts and higher taxes before hiring more staff. the American economy added a total of just 135,000 jobs during the month of May indicating that the federal budget cuts are impact the economic growth in the world’s largest economy.
Estimates shows that the unemployment rate is expected to remain at about 7 per cent for the year.