WASHINGTON (Washington Insider Magazine) – Last week, the number of Americans filing for unemployment claims dropped to its lowest level in 52 years, indicating that the labor market in the United States remains strong despite growing expenses and a continuous viral pandemic.
The Department Of labor said Thursday that jobless claims declined by 28,000 to 187,000 for the week concluding March 19, the lowest level since September 1969. Jobless assistance applications for the 1st time tend to follow the rate of layoffs.
The 4-week estimate of claims, which smooths out weekly fluctuations, has also dropped to levels that has not been seen for more than 5 decades. The 4-week moving average fell to 211,750 from 223,250 the prior week, according to the Labor Department.
According to ABC NEWS, 1,350,000 Americans received unemployment benefits in the week ending March 12, a 5-decade low.
The government announced earlier this month that companies created a healthy 678,000 positions in February, the highest monthly number since July. The unemployment rate fell to 3.8 percent in February, down from 4 percent in January, continuing a rapid reduction in unemployment to its lowest point since the epidemic began 2 years ago.
In January, firms in the United States announced a near-record number of vacant positions (11.3 million), a trend that has helped boost employees’ salaries and added to rising inflation.
Last week, the Federal Reserve took a high-risk approach to taming the highest inflation since the early 1980s, boosting its short-term interest rate and suggesting up to 6 more rate rises this year.
The Federal Reserve’s quarter-point raise in its benchmark rate, which it had kept near zero since the global crisis hit 2 years ago, signifies the beginning of the Fed’s effort to rein in the soaring inflation that accompanied the recession’s recovery. Many firms and households may face higher lending rates as a result of the rate rises.
Inflation is expected to stay high, finishing 2022 at 4.3 percent, according to officials at the central bank.
Consumer inflation surged 7.9% in the last year, the highest rate since 1982, according to official data released earlier this month.