After the release of the jobs report in Manhattan, New York City, signage for a job fair is seen on 5th Avenue.
WASHINGTON - The number of Americans filing new claims for unemployment benefits fell to a new 19 month low last week, suggesting the economy was returning to momentum amid a significant improvement in public health, though supply constraints remain.
The Labor Department said on Thursday that initial claims for state unemployment benefits fell 14,000 to a seasonally adjusted 269,000 for the week ended Oct. 30, as state unemployment benefits fell 14,000. It was the lowest level since the middle of March in 2020, when mandatory business closures were being ensured to slow the first wave of COVID-19 infections. In the past five weeks, claims have declined.
The summer wave of infections driven by the Delta variant has slowed, encourageing more Americans to travel, dine out, and frequent sports venues among activities that were curtailed by the resurgence in cases.
The Delta variant and shortages of goods contributed to restricting economic growth to its slowest pace in more than a year last quarter. There is a range that is viewed as consistent with a healthy labor market that has declined from a record high of 6.149 million in early April 2020.
The employment report for October will be available on Friday. According to a poll of economists, non- farm payrolls rose by 450,000 jobs last month. In September, the economy created 194,000 jobs, the fewest in nine months.
The ADP National Employment Report showed on Wednesday that expectations of an economic increase in job gains were boosted by a strong growth in private payrolls in October. The data on consumers said the labor market differential, which is derived from the data on consumers, was hit a 21 year high.
The worker shortages are an obstacle, but relentless workers shortages are an obstacle. There was a number of unfilled jobs as of the end of August due to fears of contracting the coronaviruses, early retirement and careers changes, as well as aging population.
Federal Reserve Chair Jerome Powell told reporters on Wednesday that these impediments to labor supply should diminish as a result of further progress on containing the virus, supporting gains in employment and economic activity. The Fed said it would start trimming its monthly bond purchases this month.
There are concerns that the White House's vaccine mandate, which applies to federal government contractors and businesses with 100 or more employees, could add to the workers shortages.
The report from Challenger, Gray Christmas, showed job cuts announced by U.S. based employers increased by 27.5% in October to 22,822, the highest since May. In 22% of the layoffs were people who refused to be vaccinated as per company requirements.
We know companies are holding tight to their workers and are in fact looking for workers, said Andrew Challenger, senior vice president at Challenger, Gray Christmas. Employment and retention efforts are difficult to complicate this.