US jobless claims fall for for a THIRD week in a row: 269,000 filed for unemployment in the last week as filings hit post-COVID low - but 5M fewer Americans are working than before pandemic struck
The number of Americans applying for unemployment benefits fell to a fresh pandemic low last week, another sign the job market is healing after last year's coronavirus recession.
Initial claims for state unemployment benefits fell 14,000 to 269,000 for the week ended October 30, the Labor Department said on Thursday, marking the lowest level since the middle of March in 2020.
Since topping 900,000 in early January, the weekly applications have fallen more or less steadily ever since and are gradually moving toward prepandemic levels of around 220,000 a week.
The new data follow a strong hiring report from ADP, which said on Wednesday that private payrolls increased by more than expected in October. The monthly federal employment situation report, the most closely watched indicator, will be released on Friday.
The economy has recovered 17 million of the jobs lost to the pandemic, and economists expect Friday's jobs report to show that it regained another 400,000 in October.
But the United States is still 5 million jobs short of where it stood in February 2020, despite record openings of more than 10 million vacant positions, and many Americans appear to have dropped out of the workforce.
Overall, 2.1 million Americans were collecting unemployment checks the week of October 23 - down from 7.1 million a year earlier when the economy was still reeling from the coronavirus outbreak.
The four-week average of jobless claims, which smooths out weekly ups and downs, dropped below 285,000, also a pandemic low.
The job market has been rebounding since the pandemic struck the U.S. economy in the spring of 2020.
In March and April of that year, employers slashed more 22 million jobs as governments ordered lockdowns and consumers and workers stayed home as a health precaution.
This year, the summer wave of infections driven by the Delta variant has subsided, encouraging more Americans to travel, dine out and frequent sporting venues among activities that were curtailed by the resurgence in cases.
But relentless worker shortages remain an obstacle. Caregiving needs during the pandemic, fears of contracting the coronavirus, early retirements and careers changes as well as an aging population have left businesses with 10.4 million unfilled jobs as of the end of August.
Businesses across the United States are clamoring to hire more workers, although the latest Department of Labor figures show unemployment is falling
Federal Reserve Chair Jerome Powell told reporters on Wednesday that 'these impediments to labor supply should diminish with further progress on containing the virus, supporting gains in employment and economic activity.'
The Fed announced it would start trimming its monthly bond purchases this month, cutting back on the flood of cash it has been pouring into markets.
There are concerns that the White House's vaccine mandate, which applies to federal government contractors and businesses with 100 or more employees, could add to the worker shortages.
A report from on Thursday from global outplacement firm Challenger, Gray & Christmas showed job cuts announced by U.S.-based employers increased 27.5% in October to 22,822, the highest since May. It said 22% of the layoffs were people who refused to be vaccinated as per company requirements.
'We know companies are holding tight to their workers and are in fact looking for workers,' said Andrew Challenger, senior vice president at Challenger, Gray & Christmas.
'However, we also know that for many employers, a federal vaccine mandate is forthcoming, and for many government employees and contractors, as well as for health care providers, mandates already exist. This complicates hiring and retention efforts.'
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