How do you interpret the fall in the US jobless rates in the latest week?

For the latest week, the rates of US jobless claims fell by just 7,000 but they continue to fall which shows that job losses are falling in the light of the economic recovery in the US. The cumulative figure of 411,000 is sharply lower compared to the levels of 900,000 seen in Jan-21. The unemployment level claims or the jobless claims are a reflection of pace of layoffs in the economy and this fall explains why unemployment has fallen from 15% to 5.6%.

This ratio is expected to improve still more with the proposed graded opening up of various states in the US. With the fall in joblessness, many US states are aggressively cutting down on the $300 weekly Federal unemployment payment. This has two larger implications. Firstly, it is positive in that it shows normal growth is coming back. Secondly, it also shows that it could set the tone for a gradual taper.