US jobless claims have sunk to the lowest level in more than 50 years
Fewer people are claiming unemployment benefits, as BLS data shows the US labor market hiring less and firing less.
New data released by the Labor Department on Thursday reveals that the number of Americans applying for unemployment benefits has fallen to its lowest level in almost six decades.
According to the filing, initial jobless claims dropped to 189,000 in the week ended April 25 — down by roughly 26,000 from the week prior, and below Bloomberg analysts’ estimates of 212,000 — marking the fewest new applications since September 1969, The Associated Press reported. Continuing claims (the number of people who’ve already filed an initial claim and continued to claim unemployment benefits for that week) also fell in the week ended April 18, hitting ~1.8 million, the lowest level seen in two years.
These unemployment claim figures indicate that the US labor market continues to be in a “low-hire, low-fire” state, supported by the latest job turnover data from the Bureau of Labor Statistics. For the month of February, total nonfarm hiring was over 4.8 million, a 9% decline from January, while separations sank to 4.97 million.
Cutting losses
What does this mean for workers? Though historically low separation rates are good news for those who are already holding down jobs — provided that they’re content with staying put — the hiring slowdown that’s been observed in recent years appears to be tapering off yet further as more companies turn to AI, the job threat du jour, to cover taskwork.
Per Bloomberg Economics, the decline in unemployment claims “sends a strong signal that layoffs are still limited.” But that’s something of a narrative violation for those keeping track of job cut announcements sweeping the tech world and beyond, which could still take full effect later in the year.
