Weekly jobless claims fall as recovery picks up

New applications for unemployment insurance fell by 13,000 to 553,000 last week as the U.S. economy continues to recover from the coronavirus recession, the Labor Department reported Thursday.

In the week ending April 24, jobless claims fell again after reaching their lowest level since the beginning of coronavirus lockdowns for the second consecutive week. The previous week’s total was revised up by 19,000 claims to 566,000, which was the lowest total number of jobless claims since March 14, 2020.

Another 133,319 Americans applied for Pandemic Unemployment Assistance (PUA), a program created to extend jobless aid to gig workers, contractors and others who do not qualify for traditional unemployment insurance.

Weekly jobless claims have steadily declined this year as COVID-19 vaccinations and the loosening of pandemic-related restrictions have fueled a recovery from the quickest collapse since the Great Depression. Claims reached a peak of 3.3 million in March 2020, almost four times the previous record of 690,000 set in 1982.

The U.S. has recovered roughly 13 million of more than 21 million jobs lost to the onset of the coronavirus pandemic, and economists expect the country to add millions more before the end of the year.

The U.S. economy, meanwhile, expanded at an annual pace of 6.4 percent in the first quarter, according to data released Thursday by the Commerce Department, a strong comeback in line with forecasts for annual gross domestic product (GDP) growth in 2021.

President Biden is pushing to expedite that recovery with his $2.3 trillion American Jobs Plan, a massive investment in roads, bridges, waterways, broadband expansion, housing and a slew of other initiatives meant to create jobs and boost long-term growth. 

Republican lawmakers have ruled out supporting Biden’s proposal, but have responded with a smaller $600 billion counteroffer that the president called a solid first step toward a potential deal.

–Updated at 9:14 a.m.