The Labor Department reported Thursday that initial unemployment insurance applications dipped last week and were close to their lowest level in more than 50 years.
The number of people who applied for unemployment benefits in the week ended December 25 was 198,000, less than the 205,000 predicted by the market.
The four-week moving average for claims came to 199,250, the lowest level since 1969.
The continuing claims data dropped by over a hundred thousand to 1.72 million, the lowest level in over a year, just before the Covid declaration.
The Federal Reserve is pulling back on some of the historically accommodative policy it put in place during the crisis as the labor market tightens. The national unemployment rate has fallen from 14.8% in April 2020 to 4.2%.
The number of people receiving benefits under all programs rose by nearly 40,000 despite the downward trend in initial claims.
The end of benefits through programs created during the Pandemic have led to a decline in claims. The total number of people getting benefits is a lot lower than it was a year ago.
The jobs market has seen a record pace of people quitting their jobs, many for better opportunities elsewhere as average hourly earnings climb in an inflationary environment.
The Fed has responded to inflation by speeding up the pace of its bond purchases. The central bank is expected to start raising interest rates in March of 2022.
