Jobless claims fall to lowest level since 1969 as economic recovery continues

The number of new applications for unemployment benefits fell by 28,000 last week to 187,000, the lowest level for initial claims since September 1969.

Weekly jobless claims are seen as a proxy for layoffs and have been watched closely in recent weeks as the Federal Reserve hiked its interest rate target. This week’s decline continues a generally downward trend in jobless claim reports since the omicron variant peaked in mid-January.

The general trend of declining layoffs is a good economic sign for President Joe Biden, who has been staring down low approval ratings and displeasure with how his administration has handled the country’s burgeoning inflation. It also gives the Federal Reserve, which just raised interest rates for the first time in years, confidence in its plan to tighten monetary policy.