ICYMI: Unemployment Claims Under Biden Reach 52-Year Low in Further Sign of Strong Economic Recovery

The Labor Department reported a 52-year low in new weekly unemployment claims this Thursday, as the Biden economy continued to show signs of robust growth – with unemployment down, job creation and growth up, and more money in the pockets of Americans, even after accounting for higher prices. Initial unemployment claims came in at 184,000, well below the 220,000 forecasted figure and remaining below pre-pandemic levels.

The figures highlight the strength of the labor market, as lay-offs remain low and employers work to retain workers who have increasing options and higher wages. Biden Administration policies have directly contributed to this, both by providing vital economic support with the American Rescue Plan and through our robust vaccination effort.

Read excerpts of news coverage below:

Yahoo Finance: New jobless claims totaled 184,000 last week, reaching lowest since 1969
[By Emily McCormick, 12/9/21]

New initial jobless claims improved much more than expected last week to reach the lowest level in more than five decades, further pointing to the tightness of the present labor market as many employers seek to retain workers.

The Labor Department released its weekly jobless claims report on Thursday. Here were the main metrics from the print, compared to consensus estimates compiled by Bloomberg:

• Initial unemployment claims, week ended Dec. 4: 184,000 vs. 220,000 expected and an upwardly revised 227,000 during prior week
• Continuing claims, week ended Nov. 27: 1.992 million vs. 1.910 million expected and a downwardly revised 1.954 million during prior weej

CNN: Jobless claims hit a new 52-year low
[By Anneken Tappe, 12/9/21]

"Weekly claims for unemployment benefits dropped to a new, multi-decade low last week, the Labor Department reported Thursday. At 184,000 claims, adjusted for seasonal swings, it was the lowest level of initial claims since September 1969, when the figure stood at 182,000.

It was also a lower count than economists had predicted. It's further proof that America's jobs recovery is pushing ahead this winter, with employers vying for staff and workers having plenty of jobs to choose from. Companies are still have a hard time keeping up with the buoyant demand for goods and services, not least because they are struggling to find workers."

Fox Business: Jobless claims plunge to 184,000, lowest level since 1969
[By Megan Henney, 12/9/21]

One reason for the larger-than-expected dip is the difficulty in adjusting the raw data for seasonal modifications around the holidays: On an unadjusted basis, initial claims actually climbed by about 64,000 to 280,665.

Still, the report underscores a strengthening labor market as the economy recovers from the pandemic and Americans venture out to travel, shop and eat. Businesses have struggled to keep up with the demand, however, and have reported difficulties in onboarding new employees. Thursday's report suggests that companies are making an effort to retain the workers they already have.

Associated Press: US jobless claims at 52-year low amid seasonal volatility
[By Paul Wiseman, 12/9/21]

Seasonal volatility likely contributed to last week's drop as the Labor Department adjusted the numbers to reflect job market fluctuations around the holidays, said Stephen Stanley, chief economist at Amherst Pierpont Securities. Before seasonal adjustments, claims actually rose by nearly 64,000 to almost 281,000.

Still, Stanley said in a research note that "the underlying trend remains downward and should be lower than it was prior to the pandemic ... The unfilled demand for workers is much larger than it was then and layoffs appear to be noticeably lower.?

[…]

Massive government aid and the rollout of vaccines helped revive the economy and the job market by giving Americans the confidence and financial wherewithal to go on a shopping spree, often online, for goods such as lawn furniture and coffee makers.

New York Post: New jobless claims plummet again to 184,000, lowest level in 52 years
[By Will Feuer, 12/9/21]

The number of Americans newly seeking jobless benefits last week plummeted to 184,000, once again touching the lowest level reported since September 1969, the feds said Thursday.

Initial filings for unemployment benefits, seen as a proxy for layoffs, dropped by 43,000 from the prior week's revised level of 227,000, according to data released Thursday by the Labor Department. Economists surveyed by Dow Jones expected to see new claims just edge lower to 211,000.

The plummet in new jobless claims along with a high quit rate and number of openings suggest the historically tight labor market is continuing, giving workers job options, at least in the short term, and making companies desperate to hold on to workers.

[…]

The latest report puts jobless claims well beneath pre-pandemic levels, suggesting a strong rebound in the strength of the labor market.