AMERICA IS Under Siege

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Jobless claims drop to lowest level in nearly 45 years

New applications for unemployment insurance benefits plunged by 41,000 to 220,000 in the second week of 2018, the Labor Department reported Thursday, the lowest level in nearly 45 years.

The report easily beat forecasters expectations for new jobless claims to drift down to around 250,000.

Low jobless claims are a good sign because they suggest that layoffs are relatively scarce. Federal Reserve officials and investors watch the numbers because they come out weekly, providing an early warning sign of any trouble.

New claims, which are adjusted for seasonal variations, are well below the mark that would suggest that unemployment is going to rise.

Thursday's number was likely artificially low because of the difficulties involved in adjusting for the seasonal affects of holiday hiring and winter weather. The extreme low level of claims "is probably an outlier," noted Jim O'Sullivan, chief U.S. economist for High Frequency Economics.

Nevertheless, new claims have scraped multi-decade lows several times in recent years as the jobs recovery steadily reduced the number of unemployed workers throughout the end of President Obama's term and the beginning of President Trump's.

The total number of people receiving unemployment benefits, which are available for up to 26 weeks in most states, stayed below 2 million, also near the lowest levels since the 1970s.

And at 4.1 percent in December, unemployment is as low as it has been since the dot-com bubble.

The Trump administration and congressional Republicans have stated that they want to maintain a high level of job creation not only decrease unemployment, but also boost the labor force participation rate by encouraging people who have retired or quit the workforce to seek out jobs.

http://www.washingtonexaminer.com/jobless-claims-drop-to-lowest-level-in-nearly-45-years/article/2646288