Jobless claims drop to 7-month low as economy plows ahead

MW Jobless claims drop to 7-month low as economy plows ahead

By Jeffry Bartash

New unemployment filings the lowest since April, but it's taking longer for people to find jobs

The numbers: The number of Americans who applied for unemployment benefits last week fell to the lowest level in seven months, reflecting steady growth in the economy and the need for most businesses to remain fully staffed.

New claims dropped by 6,000 in the seven days ended Nov. 16 from a revised 219,000 in the prior week, the government said Thursday.

Key details: New jobless claims fell in 37 of the 53 states and territories that report these figures to the federal government.

The one negative in the latest claims report was another increase in the number of jobless workers collecting unemployment benefits each week. Some 1.91 million people were getting benefits, based on seasonally adjusted figures.

It's the first time these so-called continuing claims have topped 1.9 million since the spring of 2018 if the pandemic months are excluded.

The steady increase in continuing claims over the past two years shows it's taking longer for people who lose a job to find another one - evidence of widening cracks in the labor market.

Big picture: The jobs market is not as hot as it was a few years ago. Businesses are more selective and they are hiring fewer people.

Yet the economy has grown fast enough to encourage firms to hold onto current employees and avoid layoffs, keeping the unemployment rate low and the U.S. out of recession.

Looking ahead: Businesses have done well to preserve [profits] by reducing labor costs via attrition, shorter hours and part-time employment to mitigate slack, rather than mass layoffs," wrote U.S. economist Thomas Simons in a note to clients. "We expect that this is going to continue to be a theme going forward."

Market reaction: The Dow Jones Industrial Average DJIA and S&P 500 SPX were set to open higher in Thursday trading.

-Jeffry Bartash

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November 21, 2024 09:07 ET (14:07 GMT)

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