US weekly initial jobless claims drop to 52-year low; economy eyes strong '21 finish

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US weekly initial jobless claims drop to 52-year low; economy eyes strong '21 finish

On Wednesday, US Labor Department data had unfurled that the number of Americans applying for first-time state unemployment benefits dipped to more than a five-decade low last week, illustrating a swift pick-up in economic activity while bolstering the likelihoods of a strong finish of a year that had been marred with steep shortages in labor market, a skyrocketing inflation alongside a persistent supply chain constraint.

Nevertheless, the US Labor Department’s latest weekly initial jobless claims data suggesting a robust step-up in economic activities in the world’s No 1 economy, came against the backdrop of a much-squeezed US labor market with layoffs shrinking at a breakneck pace, while a number of top-tier entities including blue-whale retailers like of Inc had been forced to raise wages to grapple with a contentious inflection point in labor market what seemingly was plagued with a chronic shortage of available workers ahead of an all-important holiday season that is expected to hit a record sales volume this year.

Aside from that, other economic data released earlier in the day had unenveloped that US Consumer Spending, accountable for roughly 66.0 per cent of entire US economic activity, sharply shot up last month, offering further evidence that US economy had been gathering momentum at a lightning pace, as fiscal 2021 draws to a close.

US initial jobless claims drop to 52-year low

According to US Labor Department data, number of Americans filing for state jobless claims for the first time on their lives declined 71,000 to a seasonally adjusted 199,000 over the week that ended on November 20, marking off the lowest since November 1969.

Apart from that, continuing claims fell 60,000 to a seasonally adjusted 2.049 million applications. Meanwhile, expressing an out and out optimism of a jubilant finish of 2021, a chief economist at FWDBONDS, Christopher Rupkey said, “There might be some seasonal adjustment problems, but the handwriting is on the wall and all the anecdotal reports on how companies cannot find the help they need are true. The economy will finish the year with a bang, there is lots to give thanks for”.