Unemployment assistance claims drop to their lowest level since 1969

By Lucy Bayly -

Weekly claims for jobless benefits fell to 199,000 last week, hitting their lowest level since 1969 and vastly improving economists' expectations, who were expecting 260,000.

These aid have decreased in recent weeks, as employers

with better conditions and wages in a very competitive labor market.

Applicants to find work during a General Motors job fair on November 16, 2021 in Spring Hill, Tennessee Brett Carlsen / Getty Images

"Getting jobless claims below the 200,000 level for the first time since the pandemic started is really significant as it

" said Mark Hamrick, an economic analyst at Bankrate.

"The tensions due to rising prices and the shortage of supplies and candidates for available jobs are offset by low levels of layoffs, wage gains and the fall in the unemployment rate," he added, "it

. "

Businesses in nearly every industry are struggling to find workers, clinging to those they have, and raising wages to attract more hires.

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Although

, compared to pre-pandemic levels, 531,000 jobs were added in October, according to the latest monthly report from the Bureau of Labor Statistics.

The unemployment rate thus fell from 4.8% to 4.6%.

If initial weekly claims remain below pre-pandemic levels, the improving labor market could put

to accelerate its debt reduction schedule, whose chairman, Jerome Powell, announced earlier in the month. this month that would amount to $ 15 billion a month.

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Nov. 9, 202102: 57

Expediting this withdrawal could advance the calendar of rate hikes planned by the central bank for next year.

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Since June 2020, the Federal Reserve has bought $ 120 billion in bonds ($ 80 billion in Treasuries and $ 40 billion in mortgage-backed securities) each month to

.

Powell announced then that the central bank is "prepared to adjust the pace of purchases if warranted by changes in the economic outlook."