Weekly Jobless Claims Dip to New Pandemic-Era Low

The fig of American workers filing for unemployment benefits fell past week to a caller pandemic-era low, signaling continued labour marketplace improvement.

First-time filings for unemployment insurance—a proxy for layoffs—came successful astatine 269,000 for the week ending Oct. 30, the Labor Department said successful a connection (pdf). The consensus forecast was for 277,000 claims.

“There’s bully quality connected respective fronts with respect to caller jobless claims, which signals stableness successful the occupation market. Initial applications for jobless benefits are down for a 5th consecutive week, falling to a caller COVID-era low,” Bankrate elder economical expert Mark Hamrick told The Epoch Times successful an emailed statement.

Continuing claims, which tally a week down the archetypal filings fig and bespeak the full fig of radical receiving benefits done accepted authorities programs, fell by 134,000 to conscionable implicit 2.1 million. This is the lowest level of continuing claims since March 14, 2020, erstwhile determination were astir 1.77 cardinal claims.

“One happening is clear: The precedence for astir businesses is to pull and clasp workers. Job cuts are astatine the lowest levels successful years. Challenger Gray & Christmas says occupation chopped announcements year-to-date are down 87 percent from the aforesaid play past year,” Hamrick said.

The caller jobless claims figures travel arsenic businesses proceed to conflict to pull and workers, boosting wages and offering perks to bring successful severely needed staff. The Labor Department said successful a caller merchandise (pdf) that mean hourly net roseate 4.6 percent successful the twelvemonth done September 2021, though the higher 5.4 percent complaint of user terms ostentation implicit the aforesaid play means that, successful existent terms, wages contracted by 0.8 percent.

Job switchers saw their wages emergence successful existent terms, however, with the astir caller ADP Research Institute Workforce Vitality Report (WVR) showing that wage maturation for radical switching jobs—as opposed to caller workforce entrants oregon existing jobholders—came successful astatine 6.6 percent successful the twelvemonth done September 2020. This would mean occupation switchers saw their wages emergence 1.2 percent successful existent presumption implicit the year.

“With near-record occupation openings and precocious levels of individuals departing jobs, the equilibrium of powerfulness has intelligibly swung into workers’ favor. This volition apt beryllium the lawsuit for arsenic agelong arsenic the betterment and enlargement continue, and until we spot the system slowing much substantially oregon retrenching,” according to Hamrick.

The U.S. system expanded astatine a lackluster 2 percent successful yearly presumption successful the 3rd 4th of this year, the Commerce Department said successful an Oct. 28 release. The deceleration from the 6.7 percent complaint of GDP maturation successful the 2nd quarter was driven chiefly by a slowdown successful user spending.

Consumer spending, which accounts for much than two-thirds of U.S. economical activity, grew astatine a 1.6 percent complaint successful the 3rd 4th aft a robust 12 percent gait of maturation successful the April–June quarter.

Another resistance connected maturation was a resurgence of COVID-19 cases successful the 3rd quarter, which led to renewed restrictions and delays successful the reopening of businesses and different establishments crossed parts of the country, according to the Commerce Department.