U.S. jobless claims have reached their lowest point in more than four decades, signaling a return to form for the country’s job market
There was a slight increase on the number of Americans filing for unemployment benefits, but overall, the number of claims slumped to their lowest levels since 1973. Initial claims for state unemployment benefits rose 6,000 last week, or 244,000 when seasonally adjusted for that week, according to the Labor Department.
The figure was higher than the forecast from economists polled by Reuters that predicted 241,000 claims. For the 103rd week straight, jobless claims stayed below the 300,000 mark, which is the longest stretch to be in that figure since 1970, when the job market was exponentially smaller.
The unemployment rate has declined to an impressive 4.8%, while the labor market is at or close to full employment. Although there still needs to be some work to be done, it is safe to say we are moving in the right direction.
A better way of measuring the number of jobless claims for some is the four-week moving average. This figure — which measures the number of people collecting unemployment checks — fell 4,000 to 241,000 last week, which is its lowest reading since July 1973.
Part of the reason why unemployment figures continues to drop has to do with the fact that many companies want to hold on to their employees as the economy continues growing steadily.
