The Ministry of Labor reported on Wednesday that the ranks of those who filed unemployed claims fell to their lowest levels in more than 52 years last week.
The total number of new applications is 199,000, which has not been seen since November 15, 1969, when the total number of claims was 197,000. The report easily exceeded the Dow Jones estimate of 260,000 and was well below the previous week’s 270,000.
The Ministry of Labor has not shown any special factors that have caused a tremendous decline that could provide a significant signal for the employment market struggling to revive since the Covid-19 shock in March 2020. bottom.
The decline was believed to be due, at least in part, to seasonal adjustment. The total number of unadjusted claims was 258,622, an increase of 7.6% from the previous week.
In another economic report Wednesday morning, GDP growth in the second quarter was revised to just 2.1%, which was below the 2.2% estimate. Orders for durable consumer goods also fell 0.5%, up 0.2% from expectations.
Due to the decrease in weekly bills, the number of continuous bills delayed by one week decreased by 60,000 to 2.05 million. This is the lowest price in the pandemic era and a strong sign that the labor market is significantly tighter.
According to data up to November 6, the total number of people receiving benefits for all programs fell by 752,390 to 2.43 million.
The data is in the midst of rising inflation in the United States, which is running at the fastest pace in 30 years. Port and supply chain blockages are a major driver of rising prices as manufacturers and service providers meet growing demand.
Weekly billing falls could draw the attention of Federal Reserve policy makers who continue to implement crisis-level policies, despite steady improvements in the job market.
The Federal Reserve has already said it will begin to gradually reduce its monthly bond purchases, but the market is closely watching when central banks may begin to raise interest rates. According to CME’s FedWatch tracker, authorities have indicated that there is probably one rate hike in 2022, but traders have shown that there is an approximately 61% chance of a three-time rate hike next year.
Government bond yields were higher after reports and Wall Street Supported by negative open in stock.
The decline in complaints wasn’t as fast as Wall Street expected, but it came with signs that the economy grew a bit faster than originally thought in the summer.
According to the Ministry of Commerce, GDP, the sum of all commodities and services produced, is one tenth of the initial estimate of 2%, primarily due to consumer purchases and upward revisions to private inventory investment. Increased.
The report also saw significant revisions to wage and salary increases, an increase of $ 301.1 billion, up more than 50% from initial estimates.
Finally, another report shows that orders for long-lasting products have declined for the second straight month.
However, orders for durable consumer goods increased by 0.5% excluding transportation and increased by 0.8% excluding defense.
New non-defensive orders for capital goods as a substitute for business investment fell 1.2% this month. However, shipments, open orders, and inventories all increased.
Weekly unemployment claims have dropped surprisingly to 199,000, the lowest level since 1969.
Source link Weekly unemployment claims have dropped surprisingly to 199,000, the lowest level since 1969.