Jobless Claims Plunge to Lowest Tally Since 1973
U.S. filings for unemployment benefits plummeted to the lowest level in almost 45 years in a sign the job market will tighten further in 2018, Labor Department figures showed Jan. 18.
Highlights of Jobless Claims for the Week Ended Jan. 13
• Jobless claims decreased by 41,000 to 220,000 (estimated 249,000); lowest level since Feb. 1973, biggest drop since April 2009.
• Continuing claims rose by 76,000 to 1.952 million in week ended Jan. 6 (data reported with one-week lag).
• Four-week average of initial claims, a less-volatile measure than the weekly figure, fell to 244,500 from the prior week’s 250,750.
Key Takeaways
The drop in claims shows that companies are increasingly holding on to their employees amid a shortage of skilled labor. Businesses are struggling to find workers to fill positions, particularly in manufacturing and construction, as cited in some anecdotes for the Federal Reserve’s Beige Book released Jan. 17.
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The figures suggest the unemployment rate of 4.1%, already the lowest since 2000, could be poised to decline further. The latest week for claims includes the 12th of the month, which is the reference period for the Labor Department’s monthly employment surveys.
Caveats for the latest numbers include the fact that the week was sandwiched between two periods containing holidays, when data tend to be more volatile. In addition, more states than usual had estimated figures.
Other Details
• Prior week’s reading was unrevised at 261,000.
• Unemployment rate among people eligible for benefits rose to 1.4% from 1.3% in previous week.
• Claims were estimated for Arkansas, California, Hawaii, Kentucky, Maine, Puerto Rico, Virginia, Wyoming.
• New York’s unadjusted claims fell by 26,190 to 23,171.
With assistance by Chris Middleton, and Vince Golle
