Continuing claims also decrease.
According to the report from the Department of Labor on Thursday, fewer people are receiving unemployment benefits now than they have in over half a century. Continuing claims for unemployment benefits have also fallen to their lowest level since 1970, a sign that jobs are abundant and the labor market is tight.
Jobless claims have gone down markedly over the past year. Unfortunately, inflation-adjusted wages are also falling faster than they have in 40 years. This presents a challenge to the nation’s “hot” economic theory that higher labor markets lead to rising real wages. That idea has not been as popular among academic economists as it is among Washington policymakers. Having demand outpace production is better than the alternative, but the costs of an overheating economy might be larger than policymakers have appreciated.
As the Lord Leads, Pray with Us…
- For U.S. economists and advisors as they provide data and recommendations to the president.
- For Labor Secretary Walsh to seek God’s direction as he oversees his department.
- For the president and his administration as they consider options for addressing inflation.
Sources: Washington Examiner, Wall Street Journal, Reuters
