Jobless Claims Hit A New Pandemic Low As Fewer Americans Claim Unemployment Benefits - Forbes

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Topline

Fewer-than-expected number of Americans filed for initial jobless claims in the week ending October 23, totaling 281,000, according to data from the Labor Department, marking a drop for the fourth week in a row.

Key Facts

Jobless claims came in at 281,000 in the week ending October 23, down 10,000 from the previous week and are the lowest levels since mid-March last year when claims hit 256,000, according to the Labor Department data.

Economists had expected 290,000 Americans to have filed jobless claims, according to Reuters.

Continuing claims, also known as insured unemployment, fell to a new pandemic-era low of around 2.2 million, recording a 237,000 drop from the previous week.

Crucial Quote

“The expectation and hope are that the downside risks associated with Covid-19 and supply chain constraints ease in the coming months,” Bankrate senior economic analyst Mark Hamrick said in a statement. “By taking some of the wind out of the sails of inflation, such developments amount to relief for consumers and businesses alike.”

Key Background

The latest jobless claims is a sign of hope in the labor market that’s been impacted by the pandemic. More than 17 million jobs that were erased when the pandemic hit were added back by last month, but that was still 5 million less than the number of jobs in February 2020, according to the Associated Press. The labor market had its worst month this year in September when there were 7.7 million unemployed Americans.