December 1, 2021
Jobless claims tumble to 199,000, lowest level since 1969

Jobless claims tumble to 199,000, lowest level since 1969

The variety of People submitting for unemployment benefits final week fell to the lowest level in additional than half a century, the newest signal the labor market is bouncing again from the coronavirus pandemic.

Figures launched Wednesday by the Labor Division present that unemployment functions for the week ended Nov. 20 tumbled to 199,000 from a revised 270,000 final week, simply topping the 260,000 forecast by Refinitiv analysts. It is unclear 

It marked the very best level of jobless claims since Nov. 15, 1969, when there have been 197,000 candidates, and has fallen under the February 2020 pre-pandemic common of 211,700. 

Persevering with claims, or the variety of People who’re consecutively receiving unemployment support, fell to 2.049 million, a lower of 60,000 from the earlier week. That’s the lowest level for insured unemployment since March 14, 2020, when it was 1.77 million. 

The report reveals that roughly 2.4 million People had been amassing jobless advantages for the week ending Nov. 6, a lower of 752,390 from the earlier week; by comparability, just a bit over one yr in the past, an estimated 21.11 million People had been receiving advantages. 

Whereas it is unclear what precipitated the beautiful drop, economists mentioned it may very well be proof that employers – confronted with an extremely tight labor market – are curbing layoffs and making an effort to retain the employees they have already got as a file variety of staff stop their jobs in quest of extra money and larger flexibility.

“Layoffs are hitting new lows amid ongoing labor shortages as employers look to hold onto hard-to-find workers,” mentioned Daniel Zhao, chief economist at Glassdoor, wrote on Twitter. (Zhao additionally cautioned about making historic comparisons utilizing jobless claims knowledge due to adjustments in unemployment insurance coverage packages over time relating to eligibility and different elements.)

The Labor Division reported earlier this month that there have been 10.4 million open jobs on the finish of September. Although little modified from the tip of August, it is nonetheless a staggeringly excessive determine; there are about 3 million extra open jobs than unemployed People on the lookout for work.  

Nonetheless, seasonal changes appeared to play some kind of function within the better-than-expecting studying: Unadjusted claims totaled 258,622 – a 7.6% improve from the earlier week.

“The drastic drop in weekly jobless claims reeks of seasonal adjustment noise, especially considering the unadjusted number rose by 18,000,” mentioned Robert Frick, company economist at Navy Federal Credit score Union. “Especially with COVID-19 cases rising, a drop seven times the recent average seems highly unlikely.”

A separate financial report launched Wednesday morning by the Commerce Division confirmed that second-quarter GDP progress was revised up barely to 2.1%. It was under Refinitiv estimates for two.2%.

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