Applications for unemployment benefits dropped last week to the lowest level since 1969 as employers try to hold onto workers amid depressed labor-force participation.
Source: US Department of Labor
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Initial unemployment claims dropped by 28,000 to 187,000 in the week ended March 19. The average estimate called for 210,000 applications in a Bloomberg survey of economists.
Continuing claims for state benefits fell to 1.35 million in the week ended March 12, the lowest level since 1970.
The fall in claims is in line with a labor market whereby employers are making effort to hang onto workers and attract new workers.
Applications should remain low as the combined effects of falling savings, and decades-high inflation is pushing Americans’ financial incentives to look for work.
The low claims signal a jobs market that Federal Reserve Chair Powell identified as being at too tight to an unhealthy level last week.