The ranks of those filing unemployment claims have fallen to their lowest level in more than 52 years last week, the Labor Department reported on Wednesday.
The new cases totaled 199,000, a number not seen since Nov. 15. 1969, when claims totaled 197,000. The report easily beat the Dow Jones estimate of 260,000 and was well below the 270,000 of the previous week.
The Labor Department didn 't indicated no special factors that caused the staggering drop, which could provide an important signal in a labor market struggling to return from the Covid-19 shock in March 2020.
The drop seemed at least in part due to seasonal adjustments. Unadjusted claims totaled 258,622, which is actually a 7.6% increase from the previous week.
In other economic reports WedIn the morning, second quarter GDP growth was revised slightly to 2.1%, although lower than estimated. for 2.2%. In addition, durable goods orders fell 0.5%, which is worse than expectations of a 0.2% gain.
Along with the drop in weekly claims, Continuing claims, which are a week behind schedule, have fallen from 60,000 to 2.05 million, a new pandemic-era low and a strong sign that the labor market is tightening noticeably.
Total benefit recipients under all programs fell sharply, down from 752,390 to 2.43 million, according to data through November 6.
Data comes in the midst of surging inflation in the United States which is at its fastest pace in 30 years. Clogged ports and supply chains have been a major contributor to the price hike as manufacturers and service providers reare laying the ground for growing demand.
The drop in weekly claims may attract the attention of Federal Reserve policymakers who have kept crisis policies in place despite the steadily improving market for the money. 'jobs.
While the Fed has already announced it will start to gradually reduce its monthly bond purchases, markets are watching closely to see when the central bank may start raising rates of interest. Although officials have indicated the possibility of a rate hike in 2022, traders are now pointing to a roughly 61% chance of three hikes next year, according to the CME's FedWatch tracker.
Government bond yields were higher after the report, and Wall Street prepared "for a negative opening of shares.
The drop in claims has accompaniedwith indications that the economy grew a little faster than expected over the summer, but not as quickly as Wall Street had expected.
The GDP, the total of all goods and services produced, increased a tenth of a percentage point from the initial estimate of 2%, mainly due to upward revisions in consumer purchases and investment in inventories private, according to the Commerce Department.
The report also underwent a massive overhaul. to the increase in wages and salaries, which rose by $ 301.1 billion, an upward revision of more than 50% from the original esti mate.
Finally, a separate report showed that durable goods orders fell for the second month in a row.
However, excluding transport, durable goods orders rose 0.5%, and excluding defense , they increased by 0.8%.
The news commandes of non-defense capital goods, an indicator of business investment, fell 1.2% for the month. However, shipments, unfilled orders and stocks rose.