Weekly jobless claims post stunning decline to 199,000, the lowest level since 1969

4 days ago

The ranks of those submitting jobless claims tumbled to their lowest level successful much than 52 years past week, the Labor Department reported Wednesday.

New filings totaled 199,000, a fig not seen since Nov. 15, 1969, erstwhile claims totaled 197,000. The study easy bushed Dow Jones estimates of 260,000 and was good beneath the erstwhile week's 270,000.

The Labor Department did not bespeak immoderate peculiar factors that caused the stunning fall, which could supply an important awesome astir a jobs marketplace that has been struggling to travel backmost since the Covid-19 daze successful March 2020.

In different economical reports Wednesday morning, second-quarter GDP maturation was revised up somewhat to 2.1%, though that was beneath estimates for 2.2%. Also, durable goods orders declined 0.5%, worse than expectations of a 0.2% gain.

Along with the driblet successful play claims, continuing claims, which tally a week behind, fell by 60,000 to 2.05 million, a caller pandemic-era low.

The tumble successful play claims could get the attraction of policymakers astatine the Federal Reserve who person kept crisis-level policies successful spot contempt the dependable betterment successful the jobs market.

While the Fed already has said it volition statesman gradually reducing its monthly enslaved purchases, markets are watching intimately erstwhile the cardinal slope mightiness commencement raising involvement rates. Though officials person indicated a anticipation of possibly 1 complaint hike successful 2022, traders are present indicating astir a 61% probability of 3 increases adjacent year, according to the CME's FedWatch tracker.

Government enslaved yields were higher aft the study and Wall Street braced for a antagonistic open successful stocks.

The driblet successful claims came alongside indications that the system grew a spot faster than primitively thought implicit the summer, though not rather arsenic rapidly arsenic Wall Street had expected.

GDP, a full of each goods and services produced, accrued one-tenth of a percent constituent from the archetypal estimation of 2%, mostly connected the backs of upward revisions successful user purchases and backstage inventory investment, according to the Commerce Department.

The study besides saw a monolithic revision to the summation successful wages and salaries, which roseate $301.1 billion, an upward revision of much than 50% from the archetypal estimate.

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