Weekly jobless claims drop amazingly to 199,000, lowest level since 1969

The rank of jobless applicants fell to their lowest level in more than 52 years last week, the Labor Department reported on Wednesday.

The total number of new claims is 199,000, a number not seen since November 15, 1969, when the total number of claims was 197,000. The report easily beat the Dow Jones estimate of 260,000 and was much lower than the previous week’s 270,000.

The Labor Department did not point to any particular factors causing the sharp drop, which could provide an important signal about the job market struggling again since the Covid shock- 19 in March 2020.

The drop came at least in part due to a seasonal adjustment. The total number of unadjusted claims was 258,622, an actual increase of 7.6% from the previous week.

In other economic reports on Wednesday morning, second-quarter GDP growth was revised up slightly to 2.1%, albeit below estimates of 2.2%. Additionally, durable goods orders fell 0.5%, falling short of expectations for a 0.2% gain.

Along with the drop in weekly claims, continued claims, which lasted a week, fell 60,000 to 2.05 million, a pandemic-era low and a strong sign that the market The labor market is tightening significantly.

The total number of grant recipients in all programs fell sharply, falling 752,390 to 2.43 million, according to data through Nov.

The data comes amid rising inflation in the US that is running at its fastest pace in 30 years. Congested ports and supply chains are a major driver of price increases as manufacturers and service providers respond to escalating demand.

The shambles in weekly statements could attract the attention of policymakers at the Federal Reserve, who have maintained crisis-grade policies despite a steady improvement in the market. job school.

Although the Fed has said it will begin to gradually reduce its monthly bond purchases, markets are watching closely to see when the central bank may begin to raise interest rates. According to the CME’s FedWatch tracker, although officials have pointed to a possible rate hike in 2022, traders are currently seeing a 61% probability of 3 hikes within the year. next.

Government bond yields higher after report, and Wall Street prepare for a negative opening stock in stock.

The drop in statements came with signs that the economy grew a bit faster than initially thought over the summer, though not as quickly as Wall Street expected.

According to the Commerce Department, GDP, the sum of all goods and services produced, increased by 1/10th of a percentage point from an initial estimate of 2%, mainly due to upward revisions in the procurement of consumers and invest in private inventories, according to the Commerce Department.

The report also showed a major adjustment to wage growth and wages, which grew by $301.1 billion, up more than 50% from initial estimates.

Finally, a separate report showed that orders for longer-lasting goods fell for the second straight month.

However, excluding transportation, durable goods orders rose 0.5% and excluding defense increased 0.8%.

Nondefense’s new orders for capital goods, a proxy for business investment, fell 1.2% for the month. However, shipments, unfilled orders, and inventories all increased. Weekly jobless claims drop amazingly to 199,000, lowest level since 1969

Sarah Ridley

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