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U.S. weekly jobless claims rise less than expected; layoffs at lowest since 1993 -Breaking

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© Reuters. FILEPHOTO: A line of people stretches out in front a newly opened career center in Louisville (U.S.A.) April 15, 2021. REUTERS/Amira Karaoud/File photo

WASHINGTON, (Reuters) – The average number of Americans who file new unemployment benefit claims last week was lower than anticipated. This is a sign that the United States has been able to reduce its dependence on foreign workers.

While labor market conditions are tightening, layoffs dropped to a 28-1/2 year low in November.

The Labor Department reported that initial claims for state unemployment benefits increased 28,000 to 222,000 in the week ending Nov. 27. The prior week’s claims fell to 194,000, but they are volatile at Thanksgiving and the beginning of the holiday season.

Reuters polled 240,000 economists to forecast that there would be 240,000 new applications over the last week. From a record 6.149 million claims in April 2020 to a decline of 20,000, the number of claims is now at an all-time low.

Because it is outside of the time period in which households and businesses were surveyed by the government for nonfarm payrolls counts and the unemployment rate, last week’s data does not have any bearing on department’s carefully watched employment report for November, due to be published Friday. Between mid-October, and mid-November, claims declined.

An economist survey by Reuters found that the nonfarm payrolls likely increased by 550,000 in November after rising 531,000 to October. From 4.6% in October, the unemployment rate will drop to 4.5%.

ADP National Employment reported Wednesday that private payrolls increased 534,000 jobs in February, thereby arguing for improvement of the labor market. The Institute for Supply Management found that manufacturing employment increased to its highest level in seven months.

In November, the Conference Board’s Labor Market Differential – which is derived from consumer views about whether it’s easy or difficult to find jobs – reached a new record.

The run of good news on the labor market was extended by a separate report on Thursday from global outplacement firm Challenger, Gray & Christmas showing job cuts announced by U.S.-based employers dropped 34.8% in November to 14,875, the fewest since May 1993. This year has seen 302,918 job losses, a drop of 86% from the 2020 period.

However, worker shortages have impeded faster job growth. According to the Federal Reserve’s Beige Book, Wednesday saw employment growth range from moderately strong across Fed Districts in October and early November. However, contacts noted “persistent difficulties in hiring and maintaining employees.”

As of September’s end, there were 10.4million job opportunities. The number of people working in the workforce has fallen 3 million from pre-pandemic levels, but generous federal benefits are no longer available, and schools have been reopened to allow for learning on-site. Companies also raise wages.

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