The number of Americans applying for unemployment benefits fell below 1 million for the first time since the pandemic began in March, suggesting the economic recovery is gaining some traction amid a deceleration in coronavirus infections. Initial jobless claims in regular state programs fell by 228,000 to 963,000 in the week ended August 8, US Labour Department data showed on Thursday. Continuing claims – the total number of Americans claiming ongoing benefits in state programmes – decreased to 15.5 million in the week ended August 1, the lowest since early April. Economists were expecting initial claims of 1.1 million and continuing claims of 15.8 million, based on median estimates. The bigger-than-expected decline in jobless claims follows a slowdown in new coronavirus cases, underlining how important controlling the virus is to an economy that remains well below pre-crisis measures in most respects. At the same time, the recent drop in claims could also potentially reflect less incentive to file after the extra $600 (Dh2,202) per week in supplemental federal benefits expired. The labour market still faces challenges including online learning that is forcing Americans to stay home and take care of their children, along with the lack of progress on a fresh stimulus package. President Donald Trump last weekend authorised the payment of $300 per week in federal aid to unemployed Americans, smaller than the $600 benefit that expired in July – and limited by funds that could run out within two months. States can choose to bolster that $300 with an additional $100, but the Labour Department clarified on Wednesday that the $100 can consist of regular benefits already paid by states. The legality and effectiveness of the move, along with a four-month deferral of payroll taxes, remains unclear. In addition to applications for benefits in regular state programmes, states reported 488,622 initial claims for Pandemic Unemployment Assistance (PUA), in the week ended August 8. That’s the federal programme offering jobless benefits to those who do not qualify for the state programme, such as the self-employed and gig workers. The total number of people claiming benefits in all programmes decreased to 28.3 million in the week ended July 25, although this figure likely still reflects states’ over-counts of reported PUA continued claims. Still, it is the lowest in almost three months.