Unemployment claims fall to 199,500 lowest level since 1969.

by Wall Street Rebel | Michael London | 11/24/2021 12:59 PM
Unemployment claims fall to 199,500 lowest level since 1969.

The number of Americans filing for first-time unemployment plunged l to another pandemic-era low.

 

According to Labor Department figures issued on Wednesday, new weekly claims for unemployment benefits fell to their lowest level in more than 50 years last week.

Initially filed applications for unemployment insurance totaled 199,000 in the week ending November 20, according to seasonally adjusted numbers, a decrease of 71,000 from the previous week. In the week of March 14, 2020, claims plummeted to their lowest level since November 1969, and they are already far lower than the pre-pandemic bottom of 225,000 applications received the previous week.

As we enter the Christmas shopping season, the sharp decline in unemployment applications comes following many months of solid job growth and increases consumer spending in the preceding months. While rising inflation has put a strain on many family budgets, employment growth, economic activity, stock prices, and corporate earnings in the United States have all continued to expand at a rapid pace.

In the words of Mark Hamrick, chief economic analyst at Bankrate.com, "getting new claims below the 200,000 barriers for the first time since the epidemic started is actually noteworthy and portrays future progress."

According to the economist, "the stresses associated with increased costs, shortages of supplies, and a scarcity of suitable job seekers are balanced against low levels of layoffs, salary increases, and a lowering unemployment rate." For the foreseeable future, growth will certainly be above average. Still, it will do so in the setting of historically high inflation, which should loosen its hold on the economy somewhat in the year ahead.

After a streak of what looked to be insignificant increases, the United States gained 531,000 jobs in October, and employment growth in the preceding months was revised much higher. Even though companies have struggled to recruit enough employees to keep up with rising consumer demand, the reduction in unemployment claims looks to be a sign of a strengthening labor market.

 

 

 

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