Fewer Americans filed new claims for unemployment benefits last week amid falling COVID-19 infections, but the near-term outlook for the labor market is unclear after winter storms wreaked havoc in the South region in the middle of this month.
The flow of upbeat economic news mostly reflects nearly US$900 billion in additional pandemic relief provided by the government in late December and the reopening of many services businesses as the winter coronavirus wave recedes. The U.S. Congress is considering President Joe Biden's US$1.9 trillion recovery plan.
Including a government-funded program for the self-employed, gig workers and others who do not qualify for the regular state programs, 1.2 million people filed claims last week. Gross domestic product increased at a 4.1per cent annualized rate, the Commerce Department said in its second estimate of fourth-quarter GDP growth. That was a slight upward revision from the 4.0per cent pace reported last month. The economy grew at a record 33.4per cent rate in third quarter.