(Bloomberg) — Applications for U.S. state unemployment benefits plunged last week to a level not seen since 1969, which if sustained would mark the next milestone in the labor market’s uneven recovery.

The initial unemployment claims for regular state programs declined by 71,000, according to Labor Department data. This was a seasonally adjusted week ending Nov. 20. According to a Bloomberg survey, 260,000 applicants were required.

But, this larger than expected drop could be explained by the way the government adjusts raw data to seasonal swings. Lou Crandall (Wrightson ICAP chief economist) pointed out in an article that because of the struggles in the labor markets, seasonal factors predicted a slower increase in unadjusted claim growth than they did last year.

Before seasonal adjustments, last week’s initial jobless claims rose by about 18,000.

At the end February 2020, claims stood at 216,000. This was before the introduction of Covid-19 in America. It pushed the number of applications to an all-time high of 6.1million in April 2020. They’ve since declined as the economy reopened more broadly and Americans returned to work. Federal pandemic unemployment benefits were also ended in all 50 states by September 6.

Millions of Americans still choose to remain on the sidelines, which frustrates employers desperate for more workers. The issue of child care is still a major concern for parents working, as Covid cases are increasing in many states. These cases disrupt individual learning.

According to the October jobs report, payrolls saw a 531,000 increase in October after significant upward revisions to previous months. Economists call for an additional half million in November. This report will be published on December 3.

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