The number of Americans applying for unemployment benefits fell for the seventh straight week to a pandemic low of 268,000.
U.S. jobless claims dipped by 1,000 last week from the week before, the Labor Department reported Thursday.
The applications for unemployment aid are a proxy for layoffs, and their steady decline this year — after topping 900,000 one week in early January — reflects the labor market's strong recovery from last year's brief but intense coronavirus recession. The four-week average of claims, which smooths week-to-week volatility, also fell to a pandemic low just below 273,000.
Jobless claims have been edging lower, toward their prepandemic level of around 220,000 a week.
Overall, 2.1 million Americans were collecting traditional unemployment checks the week that ended Nov. 6, down by 129,000 from the week before.
Until Sept. 6, the federal government had supplemented state unemployment insurance programs by paying an extra payment of $300 a week and extending benefits to gig workers and to those who were out of work for six months or more. Including the federal programs, the number of Americans receiving some form of jobless aid peaked at more than 33 million in June last year.
The coronavirus slammed the U.S. economy early last year, forcing many businesses to close or reduce hours of operation and keeping many Americans shut in at home as a health precaution. In March and April 2020, employers slashed more than 22 million jobs.
But the economy began to recover last summer. Consumers, pocketing government relief checks and gaining confidence as COVID-19 cases fell, resumed spending. With the rollout of vaccines this year, they began to return to shops, restaurants and bars.
Suddenly, many employers were struggling to keep up with an unexpected surge in demand. They are scrambling to fill job openings — a near-record 10.4 million in September. Workers, finding themselves with bargaining clout for the first time in decades, are becoming choosy about jobs; a record 4.4 million quit in September, a sign they have confidence in their ability to find something better.
Unemployment claims “have been declining on a sustained basis and are moving closer to pre-pandemic levels,'' said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “Layoffs are falling, reflective of companies holding on to workers amid a labor shortage.''
Since April 2020, employers have hired more than 18 million people, including 531,000 in October. But the U.S. economy is still more than 4 million jobs short of where it was in February last year.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
