Richard Nixon was president last time claims were this low.
The Labor Department reported on Thursday that weekly jobless claims in America has dropped to its lowest level since December 1969. Economists predicted 220,000, but the number is actually 207,000.
From the Labor Department:
In the week ending July 14, the advance figure for seasonally adjusted initial claims was 207,000, a decrease of 8,000 from the previous week’s revised level. This is the lowest level for initial claims since December 6, 1969 when it was 202,000. The previous week’s level was revised up by 1,000 from 214,000 to 215,000. The 4-week moving average was 220,500, a decrease of 2,750 from the previous week’s revised average. The previous week’s average was revised up by 250 from 223,000 to 223,250.
The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending July 7, unchanged from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending July 7 was 1,751,000, an increase of 8,000 from the previous week’s revised level. The previous week’s level was revised up 4,000 from 1,739,000 to 1,743,000. The 4-week moving average was 1,735,750, an increase of 6,250 from the previous week’s revised average. The previous week’s average was revised up by 1,000 from 1,728,500 to 1,729,500.
The number of Americans filing for unemployment insurance has been running well below 300,000, a level consistent with a healthy labor market. The claims figures are in sync with other reports showing employers are competing for a limited pool of qualified workers.
The Federal Reserve’s Beige Book, released Wednesday, showed momentum is building in the nation’s job market. “All districts reported that labor markets were tight and many said that the inability to find workers constrained growth,” it said.
Reuters reported that data also shows “manufacturing activity in the mid-Atlantic region accelerated in July, driven by a surge in new orders received by factories, [B]ut manufacturers reported paying more for inputs.”
Manufacturers do not know how the next six months will go, which shows that tariffs President Donald Trump has implemented and the tariffs from other countries has stated to sour moods.
The Washington Examiner said these stats may convince the Fed and President Donald Trump’s “administration that new hires are increasingly unlikely to come from the pool of unemployed workers.” New employees may come from those who are not looking for jobs:
“The irony is that factories cannot be brought back to America for now because there are no workers to man the machinery and tell the shop floor robots what to do,” noted Chris Rupkey, chief financial economist for MUFG. “The economy is at full employment is what jobless claims are screaming and there is no one left in America without a job.”
Over the past three months, the economy has added an average of 211,000 new jobs. That is more than twice as much as needed to keep the unemployment rate falling.
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