New applications for unemployment benefits in the USA fell to its lowest levels in 3 months

The latest macroeconomic data released this afternoon confirmed the recovering US economy. New applications for unemployment benefits fell to the lowest levels in the last 3 months. Even so, stock markets in the United States are now stagnating as government bond yields rise to their highest levels of the year.

The nervosity remains despite the better data

Stock markets are still nervous about the pace of growth in US government bond yields. The yield with a ten-year maturity grew today to 1.45% which is the highest this year. Technology stocks are also pulling other sectors down, while the Dow Jones is only stagnating today and avoiding bigger declines. Today, interesting macro data from the USA was published, which indicates that the economy is on the right track.

The lowest numbers in the past 3 months

New applications for unemployment benefits grew by 730,000 last week. This is a significant decrease from 841,000 recorded a week earlier. At the same time, the expected consensus was surpassed to 838,000. Applications from the self-employed also fell to 451,000 (the expected number was 513,000). Now, however, the gradual decline in infections and vaccination of the population is encouraging optimism, and other economic indicators, such as retail sales and activity in the services and manufacturing sectors, reflect a good start to the new year.

Chart: Weekly change in US support applications (Source:

All state programs currently cover 19 million people in unemployment benefits. According to experts, the December increase in benefits, which was part of Trump's fiscal package, was reflected in an increase in new applications since the beginning of the year. Some countries even still maintain coronavirus restrictions on business activity. In California, for example, it is not possible to reduce the new increase in applications for support because people still cannot find a new job.

We will learn more about the condition of the American labor market next week when NFP data will be published on Friday together with the latest unemployment figures.

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