Unemployment rates in the United States are at their lowest point since 1969. That is according to the latest jobs report released by the Labor Department last week, which stated that just 184,000 Americans filed new unemployment claims. That has led experts to say that our economy is recovering in big ways.
For a little perspective on the matter, we look at the jobs report that came out in April of 2020. That report stated that in March alone, 6.6 million Americans filed for first-time unemployment benefits. That means in just a year and a half, the number of people filing for unemployment benefits has dropped by over 6.4 million.
That being said, there are a lot of caveats in this month’s numbers. Experts say that seasonal volatility could very well have something to do with it. Seasonal volatility essentially surrounds the fluctuation in jobs that typically occurs around the holidays. It is also important to remember that these numbers only reflect new jobless claims. They do not include people that are chronically unemployed.
When you take into account the four week average, which smooths out some of the week to week ups and downs, last week’s numbers actually look to sit around 219,000 Americans that filed new unemployment claims. Even if you prefer that number over the first one given, it still is the lowest number we have seen since before march of 2020. In fact, it is matching numbers we were seeing back in 2018.
Another report came out this week saying; 4.2 million people in October, 4.4 million people in September, and 4.3 million people in August all quit their jobs. These numbers are record-highs.
So how can unemployment numbers be so low if so many people are quitting? Well you have to remember that under normal circumstances, quitting your job does not qualify you for unemployment benefits. That means that all those people that quit are not included in the report. Also, most of the 4.2 million people that quit in October were either simply moving into another job or leaving the workforce all together.
