Initial unemployment claims reached the lowest level since November 15, 1969, with figures coming in at 199,000. The report single-handedly beat the 259,000 forecasted.
Despite the Labor Department not indicating any particular factors that caused the significant decline, analysts believe it was partly due to seasonal adjustments.
At the same time, the continuing claims fell to 2.05 million, reaching a new pandemic-era low and pointing to a tightening of the labor market.
The positive data comes when the surging inflation in the US is running at its fastest pace in 30 years. Ports and supply chains have been important contributors to higher prices as manufacturers and service providers meet surging demand.
Moreover, the weekly unemployment claims decline might get Fed’s, who has kept crisis-level policies in place regardless of the improvement in the job market. The Fed has already announced a gradual decrease in the monthly bond purchases, indicating that it might raise interest rates in 2022.
Sources: cnbc.com, forexfactory.com