US Jobless Rate Today: US Economy Shows Strength Amid Inflation, Soaring Gas Prices

(Photo : ALEX EDELMAN/AFP via Getty Images)
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The US Department of Labor Building on March 26, 2020, in Washington, DC. - The economic shutdown caused by the coronavirus pandemic sparked an explosion of Americans filing for unemployment benefits, surging to 3.3 million last week -- the highest number ever recorded, the Labor Department reported March 26. The US Senate approved overnight a $2.2 trillion economic rescue package that includes an unprecedented expansion in unemployment benefits to try to cushion the blow until the pandemic is under control. (Photo by Alex Edelman / AFP)

Last week, fewer Americans sought unemployment benefits than at any point in the previous 50 years, indicating that firms are keeping workers despite a tight job market.

The Labor Department said on Thursday that 187,000 people applied for unemployment benefits in the week ending March 19. Adjusted for seasonal effects, the figures are the lowest since 1969. Economists keep a close eye on first-time jobless applications because they are a good indicator of layoffs.

US Weekly Unemployment Claims Hit Record Low

Meanwhile, 1.3 million Americans received unemployment benefits in the week ending March 12 - the lowest level in more than 50 years. The government announced earlier this month that companies created a healthy 678,000 jobs in February, the highest monthly number since July, CBS News reported.

Unemployment in the United States fell to 3.8 percent in February from 4 percent in January, continuing a significant reduction in the unemployment rate to its lowest level since before the outbreak began two years ago. In January, US firms advertised a near-record number of available positions (11.3 million), a trend that has helped boost employees' salaries while also adding to inflationary pressures.

The Federal Reserve raised its benchmark short-term interest rate this week, suggesting up to six more rate rises this year in an effort to combat the worst inflation since the early 1980s. Many consumers and companies may face higher borrowing rates due to the rate rises.

According to officials at the central bank, inflation is expected to stay high, finishing 2022 at 4.3 percent. Consumer inflation surged 7.9% in the last year, the highest rate since 1982, according to official data released earlier this month.

Chair Jerome Powell has frequently said that the job market is strong, with layoffs near 30-year lows and salaries growing faster than in previous years, throughout the Federal Reserve's last few press briefings. The fresh statistics from the Labor Department now support that viewpoint, as per CNET.

Weekly unemployment claims hit historic highs during the start of the COVID-19 pandemic two years ago, surpassing 6.6 million in a single week in late March 2020 as lockdowns and panic collapsed the labor market. Since mid-March, the total number of jobless claims has surpassed 40 million by late May 2020. Even though consumers are squeezed by rising inflation and record-high petrol costs, the US economy has rebounded two years later.

Employment Rate May Get Back to Normal

This report comes as the Federal Reserve considers raising interest rates more forcefully to combat inflation. The Labor Department's statistics may provide the Fed with the confidence it requires to proceed with a half-point hike in the federal funds rate, which essentially manipulates interest rates throughout the economy.

With these solid job results, the Fed is getting closer to achieving one of Congress's statutory goals: gaining maximum employment while containing inflation. According to Newsweek via MSN, the continued recovery of the US economy following the COVID-19 pandemic-driven recession is shown by the 52-year low for unemployment benefit applications. Initial applications for unemployment benefits can be used to measure the rate of layoffs in general.

In a statement released Thursday, President Joe Biden praised the figures, stating that the "historic success is no accident: it's the product of an economic plan to expand the economy from the bottom up and center out."

He acknowledged that there was more work to be done "to cut costs for families, but today's data are a reminder that the US economy is uniquely well positioned to deal with the global challenge of inflation," but added that "today's data are a reminder that the US economy is uniquely well positioned to deal with the global challenge of inflation."

The data for February brought the labor market closer to pre-pandemic levels. According to the research, the unemployment rate was 3.5 percent in February 2020, with 5.7 million individuals unemployed.