Jobless claims plunge to 52-year low
The U.S. labor market is tightening further amid the worker shortage. The Labor Department reported Thursday the number of Americans filing new unemployment claims dropped to its lowest level in more than half a century.
Weekly jobless claims tumbled to 184,000 last week – much more than economists had forecast. That’s a steep plunge from the record high of over 6 million filed in early April of 2020.
Normally, claims increase with the onset of colder weather. But due to a tightening labor market, economists foresee a break with that seasonal pattern.
Consider this: 11 million jobs were unfilled at the end of October. That’s why employers are reluctant to let go of workers. The unemployment rate fell to a 21-month low in November.
The latest report suggests the economy is regaining steam. But the spread of the Omicron variant poses a risk to that outlook. Goldman Sachs has cut its forecast for U.S. economic growth to 3.8% next year from greater than 4%, citing uncertainty stemming from Omicron.
