Is it a holiday miracle?
Initial jobless claims fell to their lowest level in more than 52 years last week, CNBC reported, falling below the pre-pandemic average and thus “marking a major milestone in the labor market recovery”, added The Wall Street Journal.
New filings for the week ended November 20 totaled 199,000, “a number not seen since November 15, 1969, when claims totaled 197,000,” CNBC wrote. The Labor Department’s latest report also beat last week’s estimate of 260,000 and 270,000.
“The statements are on track and are sending a positive signal about the labor market,” economist Rubeela Farooqi told Reuters. Journal. “Businesses are wary of allowing workers to go amid a severe labor shortage.”
Economic analyst Mark Hamrick added in comments sent to washington articles.
However, economist Lou Crandall believes the “larger-than-expected drop” has to do with “the way the government adjusts raw data for seasonal fluctuations,” writes Bloomberg.
“This is purely a seasonal distortion. Much of it will reverse next week,” Crandall said after the Labor Department statement. Ian Shepherdson, chief economist at Pantheon Macroeconomics, also said MarketWatch he believes claims will rebound to around 260,000.
Continuing claims, a week later than initial claims, also fell to a new pandemic-era low, falling 60,000 to 2.05 million, CNBC reported.
The Labor Department’s monthly jobs report, to be released next week, is “expected to shed more light on the complex labor market dynamics,” according to the report. Post.
https://theweek.com/business/1007451/initial-unemployment-claims-sink-to-their-lowest-level-since-1969-a-positive Initial jobless claims fall to lowest level since 1969: ‘A positive signal’