The labor market continues to improve in America. Our chart above shows that initial weekly jobless claims, a proxy for layoffs, fell to just 199,000 recently. That’s the lowest it’s been since the pandemic started, and even more surprisingly, it’s the lowest since November 1969—52 years ago!

As you can see on the chart, there’s been a steady decline in claims since that huge initial spike in early 2020. Businesses are trying to hire new workers and hang on to existing workers—who are quitting their jobs at a record pace. Strong hiring demand, coupled with record-high job openings and fewer people looking for jobs, has helped push down layoffs in the labor market.

To be sure, seasonal adjustments likely explain why there was such a sharp decline last week. On an unadjusted basis, initial claims rose to roughly 258,600. However, the overall message remains the same: workers are in short supply, and demand remains strong, so layoffs are falling, and the labor market is steadily improving.

 

This is intended for informational purposes only and should not be used as the primary basis for an investment decision.  Consult an advisor for your personal situation.

Indices mentioned are unmanaged, do not incur fees, and cannot be invested into directly.

Past performance does not guarantee future results.