Jobless claims drop to 199,000, lowest level since 1969

Jobless claims from last week reached their lowest since Nov. 1969 when they dropped to 199,000, according to the Department of Labor.

The initial applications for unemployment insurance declined 71,000 from the previous week, according to the seasonally adjusted figures. The claims fell well below the 225,000 applications in mid-March 2020, when the pandemic lockdowns began.

The significant decrease in jobless claims comes after strong job growth and an increase in consumer spending leading into the holiday shopping season, The Hill reported. Even with high inflation, the country's job growth, corporate profits, stock values, and economic production have all continued moving forward.

A total of 531,000 jobs were added to the U.S. labor market last month, exceeding expectations. The unemployment rate also dropped to 4.6% in October, down from the September rate of 4.8%.

"Layoffs are hitting new lows amid ongoing labor shortages as employers look to hold onto hard-to-find workers," tweeted Daniel Zhao on Wednesday, who's a senior economist at Glassdoor.

He added that "this is in part due to the seasonal adjustment expecting a much larger jump in non-seasonally adjusted claims, so this dip below pre-crisis levels may be short-lived."