Fantastic news out of the Labor Department this morning:
CNBC – The number of Americans filing for unemployment benefits fell to more than a 45-year low last week, suggesting the economy remains strong despite signs of a slowdown in the first quarter.
Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 215,000 for the week ended March 24, the lowest level since January 1973, the Labor Department said on Thursday. Data for the prior week were revised to show 2,000 fewer claims received than previously reported.
Economists polled by Reuters had forecast claims falling to 230,000 in the latest week. The government released 2018 seasonal factors with the report and published revisions to the seasonal factors and data going back to 2013.
The revisions did not change the theme of tightening labor market conditions. Claims have now been below the 300,000 threshold, which is associated with a strong labor market, for 158 straight weeks. That is the longest such stretch since 1970, when the labor market was much smaller.
I would assume this means the reverse would be true, that more people have jobs now than in 45 years? It may not be that simple, but it’s clear the economy is doing far better than it’s done in a long time. I just hope that with tax reform behind us it keeps getting stronger.