The number of Americans receiving state unemployment benefits hit its lowest level since July 1973 as the economy continued to experience strong labor market conditions.
The Labor Department said the number of claims workers filed for more than a week during the week ending Oct. 27 was 1,623,000, a decrease of 8,000 from the previous week’s unrevised level of 1,631,000.
U.S. Department of Labor released a report on Thursday morning saying that first-time claims for state unemployment benefits were 214,000 during the November 3 week, a drop of 1,000 from the previous week. Economists were expecting 210,000 new claims last week, according to The Wall Street Journal.
The number of jobless claims filed the previous week increased by 1,000 to 215,000. The four-week moving average was 213,750, a decline of 250 from the revised average in the previous week.
Jobless claims rose moderately after hitting a 49-year low of 202,000 in mid-September following the devastating results of Hurricane Florence. Claims in those states remained affected in the week ended November 3, according to the department.
At present, the American labor market is extraordinarily tight, making businesses disinclined to lay off of workers. Companies, in fact, have no choice but to raise wages and benefits to lure workers.
The robust job market pushed the unemployment rate to a 48-year low of 3.7% last month, with the number of openings exceeding six million unemployed Americans that were seeking jobs by more than a million.