US jobless claims plunge to 576,000, lowest since pandemic

WASHINGTON (AP) — The number of Americans applying for unemployment benefits tumbled last week to 576,000, a post-COVID low and a hopeful sign that layoffs are easing as the economy recovers from the pandemic recession.

The Labor Department said Thursday that applications plummeted by 193,000 from a revised 769,000 a week earlier. Jobless claims are now down sharply from a peak of 900,000 in early January.

For the week ending March 27, 16.9 million people were continuing to collect jobless benefits, down from 18.2 million in the previous week. Those figures make clear that even as the economy has strengthened in recent weeks, millions are facing a loss of a job or income and have been struggling to pay bills or rent.

The drop in claims comes after employers adding 916,000 jobs in March, the most since August, in a sign that a sustained recovery is taking hold as vaccinations accelerate, pandemic business restrictions are lifted in many states and Americans appear increasingly willing to travel, shop, eat out and otherwise spend again. The unemployment rate fell to 6%, from 6.2%, less than half the pandemic peak of nearly 15%.

The nation’s unemployment rate has declined steadily, from a high of 14.8% a year ago to 6%. The last time the jobless rate was this low, weekly claims were around 350,000, still well below their current level.

Economists point to a range of potential explanations for the discrepancy. For one thing, many states are still struggling to clear backlogs of applications from previous weeks. As a result, jobless claims being reported now may stem from layoffs that occurred weeks ago. Some states are also facing what they suspect is a sizable number of fraudulent claims for unemployment aid.

Another possible factor is that under President Joe Biden’s $1.9 trillion rescue package, the federal...