Initial jobless claims fall to yet another fresh pandemic-era low

Initial jobless claims hit another fresh pandemic-era low on Wednesday, with labour shortages and efforts to hire and retain staff putting a cap on the rate of firings and separations across the US.

According to the Labor Department, which released its jobless claims report a day earlier than usual due to the Veterans Day holiday on Thursday, initial unemployment claims fell to 267,000 in the week ended 5 November from a revised print of 271,000 for the week before.

While the initial claims numbers were slightly higher than anticipated, the figure remained shy of the psychologically important 300,000 mark for a fifth consecutive week at their lowest level since March 2020.

Continuing claims also declined, falling to 2.160m from the prior week's revised reading of 2.10m.

Pantheon Macroeconomics' Ian Shepherdson said: "Note yet another dip in jobless claims to a new pandemic low, continuing the steady downward trend. The tightness of the labor market has raised the bar for layoffs, and claims are set to drop further. We expect a return to the pre-Covid low, 210K or so, early next year."