Jobless claims hit another 50-year low

Fewer Americans applied for unemployment benefits last week than at any time in the last 50 years, a sign that employers are holding back workers in the midst of a tight labor market.

Some 187,000 workers applied for unemployment benefits in the week ending March 19, the Labor Department said Thursday. The figures, adjusted for seasonal factors, are the lowest since 1969. Unemployment claims for the first time are closely monitored by economists, as they generally track layoffs.

Meanwhile, 1.3 million Americans were receiving unemployment benefits in the week ending March 12, a minimum of more than 50 years.

The figures are “a sign of how tight the labor markets are,” said economists at Oxford Economics in a note. “The decline in claims was widespread across states and was not heavily influenced by seasonal adjustment factors.

Earlier this month, the government reported that employers added a fort 678,000 jobs in February, the largest monthly total since July. Unemployment in the United States fell to 3.8% from 4% in January, extending a sharp drop in the unemployment rate, which has reached its lowest level since before ‘pandemic erupted two years ago.

“Labor demand remains strong, evident in near-record levels of job supply far exceeding the number of unemployed in the economy. This should keep layoffs low, for now,” Rubeela said. Farooqi, chief US economist at High Frequency Economics. he said in a research note.

U.S. companies recorded a near-record level of job openings in January (11.3 million), a trend that has helped keep workers’ wages rising and increased inflationary pressures.

The Federal Reserve acted last week to control the worst inflation since the early 1980s. increasing your short-term benchmark interest rate and pointing to up to six additional rate hikes this year. Rate increases will eventually mean higher loan rates for many consumers and businesses.

Central bank policymakers have projected that inflation will remain high and end in 2022 at 4.3%. Earlier this month, the government reported it Consumer inflation rose 7.9% during the last year, the strongest rise since 1982.

The Associated Press contributed to the information.