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Last week, the weekly jobless claims dropped as the U.S. jobs market climbed to a 52-year low level reported by the Labor Department.
For the week ending Dec. 4, the initial filings for unemployment insurance are 184,000, which is close to the filing of 182,000 on Sept. 6, 1969.
According to a Dow Jones economist survey, the initial claims for unemployment insurance were forecasted to total 211,000 last week.
But the labor market showed progress in spite of struggling with a worker shortage and other pandemic-related fallout.
Ian Shepherdson, chief economist at Pantheon Macroeconomics said that firms should be very careful about cutting down on their staff unless they have no other choice because re-hiring people will get difficult and likely expensive later.
Hiring growth in November showed just 210,000, but experts believe that it would be difficult to gauge the progress in jobs now because the Federal Reserve is changing its monetary policy after almost a year and a half which leaves place for a lot of ambiguity.
According to current market pricing as gauged by the CME the Fed is expected to go ahead with tapering of its bond-buying program, thereby reducing its purchases by $30 billion a month, which may lead to rate hikes.
A clear idea can be got about inflation when the Labor Department releases November’s consumer price index today.
Reference Source: CNBC
