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- The number of claims for jobless benefits in the United States falls to its lowest level since 1969, as inflation becomes an increasing concern
- Claims for state unemployment benefits fell by 28,000 last week to a seasonally adjusted 187,000, with sharp falls noted in California, Michigan, Kentucky and Illinois
- At the end of January there was a record of 1.8 open positions for every unemployed person
- Due to a shortage of staff, layoffs are expected to remain low, however this shortage is expected to boost wage growth and feed into higher inflation
- Federal Reserve officials have warned sharper interest rate hikes will be needed to battle inflation
The number of claims for jobless benefits in the United States has fallen to its lowest level since 1969, as inflation becomes an increasing concern.
Claims for state unemployment benefits fell by 28,000 last week to a seasonally adjusted 187,000, with sharp falls noted in California, Michigan, Kentucky, and Illinois.
This is attributed to the easing COVID-19 restrictions occurring across the country.
In comparison, jobless claims reach a record high in April 2020 of 6.15 million.
At the end of January there was a record of 1.8 open positions for every unemployed person. Unemployment was at a two-year low in February of 3.8 per cent.
Due to a shortage of staff, layoffs are expected to remain low. However, this shortage is expected to boost wage growth and feed into higher inflation.
Last week, the Federal Reserve increased interest rates for the first time in three years.
Fed officials have since warned it is not enough and sharper interest rate hikes will be needed in order to battle inflation.
Russia’s war against Ukraine is expected to worsen global supply chain shortages, but has had no impact on the labour market or business activity.
