Jobless claims decreased to a new low in the United States last week. This means that the number of Americans applying for unemployment benefits has fallen to the lowest level we have seen in almost fifty years. The U.S. labor market appears to be getting stronger in the face of slower economic growth.
Some employers are concerned that this means a bleak outlook for the U.S. economy. Recent data showed that U.S.-based companies in the first quarter of the year had announced the highest number of job cuts since 2015.
First Quarter Unemployment Numbers
Claims for unemployment benefits decreased by 10,000 to 202,000 at the end of the first quarter, which is the lowest it has been since late 1969. The data shows no significant rise in companies laying off workers. The reason for this is a lack of skilled labor, and the deficit continues to grow.
Although job growth has slowed down from last year, the pace is keeping in step with the rise of individuals coming into working age. With more youngsters entering the workforce, the working age population continues to grow, thus supporting the steadying of the unemployment rate.
Can We Expect Ripple Effects?
With news of the drop in U.S. jobless claims unsettling some employers, the numbers are still fluctuating. It is yet to be seen how the new low will affect our economy or the effects of the skilled labor shortage. The tight labor market makes it difficult for managers to find and keep qualified workers, which creates faster wage growth for employees. If you are looking for top talent, but failing in your search, contact ICS. Click below to start hiring your best employees.