The number of additional claims for unemployment benefits decreased by 15,000 last week to 214,000.
This is contributing to the positive labor market news coming out of previous monthly jobs reports in the last few weeks.
When @POTUS took office, more than 800,000 new claims were being filed each week.
A little over a year later, the number of new unemployment claims is lower than before the pandemic. This is historic. https://t.co/CkpTISfB2a
— Secretary Marty Walsh (@SecMartyWalsh) March 17, 2022
A Drop Since Omicron
Employment claims have been declining since omicron peaked in mid-January, indicating firms are growing increasingly desperate to keep their employees.
Weekly jobless claims are regarded as a barometer for layoffs; they have been extensively scrutinized in recent weeks as the Federal Reserve began raising interest rates in a bid to rein in inflationary pressures.
The general trend of falling layoffs is a positive economic indicator for President Joe Biden.
Biden has been dealing with poor support ratings and public dissatisfaction with the way his government handled growing prices.
The Federal Reserve, which just increased interest rates for the first time in years, now has more certainty about the direction of its monetary policy tightening efforts.
*U.S. JOBLESS CLAIMS FALL TO 214,000 LAST WEEK; EST. 220,000
— Investing.com (@Investingcom) March 17, 2022
As Mark Hamrick, an executive economic strategist at Bankrate, put it, “the job market’s consistency stands in stark contrast to the high level of uncertainty the world is experiencing.”
“This comes as a result of the war in Ukraine, massive inflation, and the possibility of further supply chain mishaps, due to China’s efforts to bring COVID under control.”
Over the past year, the number of new unemployment claims has steadily declined. In March 2021, new entries totaled more than 700,000 per week.
While COVID-19 surged with omicron this year, unemployment claims only increased marginally, indicating economic recovery is still in good shape.
Consumer Price Index
Following strong numbers in January, the economy outperformed expectations again in February, adding 678,000 jobs. This was a good sign the labor market is returning to its pre-pandemic vigor.
The central bank said it would boost its interest rate goal by a quarter of a percentage point to rein in skyrocketing inflation.
This marks a significant shift away from the emergency tactics implemented during the epidemic. The quarter-point increase was less than some economists expected since they hoped for a half-point increase.
Over the twelve months ending in January, consumer prices increased by 7.5 percent, the highest inflation rate in more than four decades.
When it comes to the February consumer price index survey, which was issued last Thursday, experts were unanimous that inflation increased even more.
Inflation has been the most serious economic crisis to confront the country in recent years. According to the Consumer Price Index, consumer prices rose 7.9 percent in the previous 12 months ending in February, the fastest growth rate since 1982.
This should draw your attention away from what Biden stated regarding the current inflation. He linked it to the Ukraine-Russian conflict.
It went from transitionary to being caused by external forces. When will it end?