New applications for unemployment benefits haven’t been this low since 1969, with the number of first-time filings for unemployment benefits tumbling last week by 22,000 to an estimated 187,000 claims, marking the lowest seasonally adjusted tally since September 1969, according to the Department of Labor.
Labor Market Trends
Jobless claims data can be highly volatile and is frequently revised; however, it also can provide a timelier snapshot of shifts occurring in the labor market, which has seen a slowdown in hiring as well as in job cuts. First-time claims are closely watched as a proxy for layoff activity, which appears to be subdued.
The US labor market’s low-hire, low-fire environment also has made it harder for people to find work. Last year, the number of continuing claims, which are made by people who filed for unemployment insurance for a week or more, was consistently butting up against four-year highs. They’ve moderated somewhat in the first half of this year.
The job market has been contending with a slew of headwinds recently. Rampant uncertainty, a lasting hangover from pandemic-era overhiring, plus the rise of AI and a cocktail of other economic concerns – persistently high inflation, elevated interest rates and a shrinking labor force – have stifled businesses’ expansion plans and put hiring on ice.
Original reporting: El Paso News (HLL/CB) — read the source article.
