According to the labor department, there has been a significant drop in the number of unemployment benefit claims. According to the labor department, the number of unemployment benefits claims dropped by as much as 18,000 to a seasonally adjusted 324,000.
The sudden reduction in the number of claims made is contrary to the growing belief that the economic activities slowed down in April and March.
3,45,000 new jobless claims were expected by the analysts, but the actual figures were 21,000 less than that. As a result of the decline in the figures, the stock market rose as well.
It’s not yet clear whether the decline is a sustaining one. That being said, the level of jobless claims was the lowest since January 2008 increasing the hopes of fast economic recovery.
