Initial jobless claims for the week ending April 17 fell to a seasonally adjusted 547,000, a 39,000 drop from the previous week and the lowest level since pandemic lockdowns began last March.

The continued drop in weekly claims is a sign of an improving labor market but also indicates how tough conditions remain.

The weekly figure is over double the pre-pandemic level.

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"Today’s Labor Department report underscores the significant distance remaining for the labor market to fully recover," said Andrew Stettner, a senior fellow at The Century Foundation.

"While new layoffs have slowed considerably, they are still nowhere near the level associated with a stable labor market."

An emergency pandemic unemployment program for the self-employed and gig economy workers saw an uptick in filings, while the most recent estimate for overall continued claims rose by nearly half a million to 17.4 million. That data, however, lags by two weeks.

Stettner said that the situation in the labor market remained a shortage of jobs, rather than an unwillingness to work. Read more at The Hill