Monday Market Update: Unemployment Reaches 50-Year Low
Jobless claims reach the lowest level since 1969.
Happy Monday! As we all return to our routines after a holiday week behind us, I wanted to share some employment news you may have missed in your preparations for Turkey Day! On Wednesday of last week, new unemployment claims totaled 199,000 – the lowest level since November of 1969!
Furthermore, continuing jobless claims fell to a pandemic-era low of 2.05 million, a drop of 60,000. Wages and salaries also grew by $301.1 billion according to the Labor Department report, which also reported 531,000 jobs added nationwide last month.
While all signs point to a tight labor market and continued economic recovery, the US still needs to regain 4 million jobs to return to pre-pandemic levels. In addition, rising food and gas prices are discouraging to many Americans. Adding to the complex employment picture is the fact that many workers left the workforce during the pandemic due to childcare concerns and it is unknown how many will re-enter.
While reduced unemployment claims are generally a very positive indicator for home sales and real estate, the impact on rates remains to be seen. CME’s FedWatch Tracker has stated that “… officials have indicated a possibility of perhaps one rate hike in 2022, [yet] traders are now indicating about a 61% probability of three increases next year.”
What does all of this mean for you?! First of all, employment opportunities are abundant in many fields so if you have considered a change or are seeking career growth – this may be your season! In addition, this is a great time to consider your own buying and/or refinancing goals given that some have projected rates to rise, though how much or how quickly is uncertain. Last but not least, these are all good signs to end 2021 with hope for better days ahead; not everyday is good but there is something good in every day – more individuals with jobs is unarguably a very positive thing!
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Weekly jobless claims post stunning decline to 199,000, the lowest level since 1969
Weekly jobless claims plunge to 199,000, the lowest level in more than 50 years
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