First time jobless claims in the United States fell to its lowest level in 20 months, to 284,750, more than 13,000 lower than the previous week and an encouraging sign that employers are recovering from the pandemic slowdown, CNBC reports.
The weekly first time claims number 284,750, the lowest level since March 2020. One year previous, the first time unemployment claims were at 791,000. Another sign that the economy is recovering: Continuing claims, which run a week behind the headline number, declined 134,000 to just over 2.1 million.
“The fifth straight weekly drop in jobless claims, to a new pandemic low, is consistent with all the other evidence pointing to labor market tightness,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics. “With demand reviving post-Delta, the bar for layoffs is high and rising. Claims appear to be on course to reach the pre-Covid level early next year.”