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Unemployed claims plummeted to 199K, the lowest level since 1969

On Friday, May 21, 2021, a customer looking for an employee at a Nordstrom store in Coral Gables, Florida is walking behind a sign (AP Photo / Marta Lavandier).

((((Hill) – New weekly claims for unemployment aid plummeted to the lowest levels in more than 50 years last week, according to data released Wednesday by the Ministry of Labor.

According to seasonally adjusted figures, the number of initial unemployment insurance applications for the week up to November 20 was 199,000, a decrease of 71,000 from the previous week. Claims have fallen to their lowest levels since November 1969, well below the pre-pandemic valley of 225,000 applications received during the week of March 14, 2020.

The unemployment plunge comes after months of significant employment growth and increased consumer spending for the holiday shopping season. While high inflation is stressing many households, US employment growth, economic production, stock prices and corporate profits are all positive.

Mark Hamrick, Chief Economic Analyst at Bankrate.com, said:

“Rising prices, shortages of supplies, and tensions associated with available job seekers are being weighed against low levels of layoffs, rising wages and falling unemployment,” he continued. “Growth may be above normal for the foreseeable future, but given historically high inflation, it should ease some of the grip on the economy over the next year.”

America Added 531,000 Employment growth in October and the previous month were revised significantly higher after a series of events that initially seemed to be marginal profits. Companies are struggling to hire enough workers to meet the surge in consumer demand, but lower unemployment claims appear to be a sign of an improvement in the labor market.

“Layoffs are hitting new lows amid ongoing labor shortages as employers are trying to retain hard-to-find workers,” said Daniel Jao, senior economist at Glassdoor, in a thread on Wednesday on Twitter. “.

Still, Zhao said the reason for the significant drop below pre-pandemic levels may be that the seasonal impact on employment was lower than expected.

“As you can see from the chart above, this is because seasonal adjustments are expecting a significant increase in non-seasonally adjusted bills. Therefore, this decline below pre-crisis levels can be short-lived. “He explained.



Unemployed claims plummeted to 199K, the lowest level since 1969

Source link Unemployed claims plummeted to 199K, the lowest level since 1969

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