US jobless claims at lowest point in 52 years

On Wednesday it was revealed that the number of Americans claiming unemployment benefits fell to its lowest level since 1969.

The news is a signal that the US economy is regaining some strength amid a period of shortages and inflation.

Claims for state unemployment benefits are down by 71,000 to 199,000 for the week ending on November 20.

This far exceeded economists’ expectations which were in the region of 260,000 applications.

Additionally, the figure is well below the pre-pandemic average level of 220,000.

“It is fair to say that we didn’t see that coming,” Mark Hamrick, senior economic analyst at Bankrate, told the Financial Times.

“Americans head into the heart of the holiday season with a reasonable expectation that an already tight job market will continue to tighten in the months ahead.”

The US economy grew at a yearly rate of 2.1% in Q3, slightly above the level predicted a month ago, according to the US Commerce Department’s Bureau of Economic Analysis.

“A resurgence of Covid-19 cases resulted in new restrictions and delays in the reopening of establishments in some parts of the country,” the BEA explained. “In the third quarter, government assistance payments in the form of forgivable loans to businesses, grants to state and local governments, and social benefits to households all decreased.”

Onwards and upwards?