WASHINGTON, (Reuters) – The US’s number of unemployment benefit claims fell by 19 percent last week. This suggests that the economy is gaining momentum despite a substantial improvement in public healthcare. However, supply limitations remain.

According to the Labor Department, initial claims for state unemployment benefit fell by 14,000 to an adjusted seasonally 269,000 during the week that ended on Oct. 30. This was the lowest figure since March 2020 when compulsory business closings were enforced in an effort to reduce the initial wave of COVID-19-related infections. For five consecutive weeks, claims have declined.

This summer’s wave of infection caused by the Delta variant is over. Americans are now more likely to travel and dine out, as well as enjoy the many sporting events that have been impacted by the return of cases.

Economic growth was slowed by the Delta variant, as well as shortages of goods. This is more than one year ago. Although they have fallen to 6.149million in April 2020 (a record), claims are within an acceptable range for a healthy labor force.

This is a good sign for Friday’s release of the October employment report. An economist poll by Reuters found that the non-farm payrolls increased by approximately 450,000 jobs during September. September’s economy saw the creation of 194,000 jobs, the most in nine years.

The ADP National Employment Report, which showed strong growth in private payrolls for October, bolstered expectations of an increase in job gains. Conference Board’s Labor Market Differential – which is based on data from consumers about whether they think jobs are available or difficult to find – reached a 21 year high.

Still, there is a constant shortage of worker workers. As of August 31, 2010, there were 10.4million unfilled positions in the United States.

Jerome Powell (Federal Reserve Chair) stated to reporters Wednesday that the “impediments to labor supply” should decrease as a result of further progress in containing the virus and supporting growth in employment.

The Fed has announced that it will begin to reduce its monthly bond purchases in this month.

The White House vaccine mandate that applies to federal contractors and companies with more than 100 employees could lead to worker shortages.

A report from on Thursday from global outplacement firm Challenger, Gray & Christmas showed job cuts announced by U.S.-based employers increased 27.5% in October to 22,822, the highest since May. The report stated that 22% were laid off by people who didn’t comply with company vaccination requirements.

“We know companies are holding tight to their workers and are in fact looking for workers,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas “However, we also know that for many employers, a federal vaccine mandate is forthcoming, and for many government employees and contractors, as well as for health care providers, mandates already exist. This makes it more difficult to hire and retain workers.