Jobless claims level hit lowest since 1969

According to data from the Labor Department,  the number of weekly claims for unemployment benefits finally fell below the pre-pandemic levels. The total number of jobless claims last week came up to 199,000 when adjusted for seasonal swings and is the lowest level since November 15, 1969. Benefit claims rose to millions in March 2020 when the pandemic caused the economy to shutter. Over the 20 months since then, claims have edged down more or less continuously. They hit a peak of 6.15 million in the week of April 4, 2020. It took until last week for the numbers to finally fall below pre-pandemic levels of around 200,000. 

Daniel Zhao, Glassdoor Senior Economist wrote in a tweet, "Layoffs are hitting new lows amid ongoing labor shortages as employers look to hold onto hard-to-find workers." The struggle to find workers has become the characteristic of the pandemic economy. Demand for workers is high, but the labor force participation rate has slipped. For many workers, this also means more choice. Just in September, the number of workers who voluntarily quit their jobs rose to a record high of 4.4 million. Gus Faucher, PNC chief economist says that the dramatic drop in jobless claims last week is likely an overstatement about how good things are in the labor market right now. "Although the plunge in UI claims was certainly welcome, it does not indicate a dramatic turn in the labor market. Claims are highly volatile, especially around holidays," he added. 

Source: CNN