Jobless claims massively beat expectations, hitting not just another pandemic low, but the lowest level since 1969.
Last week’s initial jobless claims dropped to 199,000, data from the Department of Labor revealed.
The number of Americans applying for unemployment benefits fell by a whopping 71,000, much better than expected.
The prior week’s number of 268,000 was upwardly revised to 270,000. Experts estimated the claims drop slightly to 260,000.
Continuing claims dropped as well, to 2.049 million from 2.080 million the week prior. However, the numbers were worse than the expected 2.032 million.
As the U.S. government discontinued the COVID 19 unemployment benefits, unemployment rates started creeping up.
Prior to last week, jobless claims were dropping slowly toward the pre-pandemic levels of 220,000. The week prior, jobless claims fell by a modest 1,000.
The drop in claims could be an indicator that the economy is going towards recovery. Now, the key focus is on whether the rebound will cause a spike in inflation.