Initial US jobless claims fell by 43,000 last week to 184,000, the US Department of Labor announced. This is the lowest level for initial claims since Sept. 6, 1969, when it was 182,000. The previous week’s level was revised upward by 5,000.
In addition, the four-week moving average of jobless claims fell by 21,250 in the week ended Dec. 4 to reach a level of 218,750. This is another new post-pandemic low and the lowest level for this average since March 7, 2020, when it was 215,250. The previous week’s average was revised upward by 1,250.
The decline in claims represents more progress for a labor market still struggling with a worker shortage and other pandemic-related fallout, CNBC reported.
“A correction next week seems likely, but the trend in claims clearly is falling rapidly, reflecting the extreme tightness of the labor market and the rebound in GDP growth now underway,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics, as told to CNBC. “It’s very risky for firms to let go staff unless they have no other choice, because re-hiring people later will be difficult and likely expensive.”