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2 Million Americans Still Receiving Unemployment Benefits Despite New Jobless Claims Unexpectedly Sink To 52-Year Low


In a landmark for the labor market, new filings for jobless benefits last week dropped below their level before the pandemic struck, plunging to a low not hit since 1969, the government said.

Meanwhile, spending and incomes both rose more than expected last month — though prices also increased five percent compared to October 2020, their biggest jump since November 1990.

Biden cheered the employment data, saying in a statement that it signaled a “historic jobs recovery” and that “more Americans are getting back to work, and more Americans have money in their pockets.”

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Spending and incomes have also climbed above pre-pandemic levels thanks in part to massive spending measures enacted in Washington, Gregory Daco of Oxford Economics said.

“As we look forward to Thanksgiving, there is much to be thankful for in this fiscally-stimulated recovery,” he said in a note, referring to the Thursday holiday.

“Still, the recovery process isn’t complete, with spending on services well below its pre-pandemic trend, and the transition from public- to private-driven growth will be delicate.”

New Jobless Claims Unexpectedly Sink To 52-Year Low
US President Joe Biden

Since the beginning of what would become the world’s largest Covid-19 outbreak in March 2020, when more than 20 million people lost their jobs, the US economy has come a long way.

Weekly unemployment benefit filings soared into the millions before leveling out for the majority of the year. With the availability of Covid-19 vaccinations in 2021, they were able to return to levels reached prior to the epidemic.

The newest Labor Department statistics puts the well monitored index of employment market health back below where it was before the layoffs began on March 14, 2020.

Analysts, however, were skeptical. Claims fell by 71,000 from the previous week, reaching a level not seen in generations, according to Pantheon Macroeconomics’ Ian Shepherdson, who ascribed the drop to a “seasonal adjustment oddity” that “will dramatically reverse next week.” In a study, he said, “That said, the trend in claims is obviously dropping.”

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