Jobless Claims in the U.S. Have Fallen to a 52-year Low – Here’s Why

At the start of the pandemic, many people in the U.S. and in other parts of the world lost their jobs and their means of livelihood. The situation was grim, and it seemed like it would take ages for the country to recover from this dip. Many who were left jobless had to seek unemployment benefits to keep their lives going. But surprisingly, over the past few months, the jobless claims have been showing a downward trend.

In November 2021, the number of jobless claims dropped to an all-time low in over half a century. Claims dropped by 71,000 to a total count of about 199,000 claims, which is the lowest the country has seen since November 1969. Even after seasonal adjustments around Thanksgiving, the downtrend of jobless claims continued.

What is the Reason Behind this Speedy Recovery?

The country had seen some intermittent drops in jobless claims during the pandemic too, but they were soon negated by uptrends again, making it a bumpy ride. But of late, the downtrend has been constant. This continued decline in jobless claims is seen as an aftermath of the massive job cuts and the Great Resignation that the pandemic brought upon us.

Many organizations had to lay off employees during the pandemic, having suffered from losses and unable to pay salaries and wages without a steady cash flow. In other cases, it was the employees who decided to quit their jobs for a variety of reasons – what is now being termed as the Great resignation. Both of these situations contributed to a glaring gap in the labour market, leaving companies struggling to overcome this labour shortage. According to government reports, there are over 11 million open positions to be filled in the U.S. right now.

The reports also show a steady decline in the number of layoffs by organizations. This goes on to indicate that fewer people are losing jobs now while more people are probably getting hired, which is why unemployment is seeing a decline in the country.

Though this near record-breaking number of job openings in the country is an excellent opportunity for job-seekers, for employers, it is a highly challenging time on the contrary. Employers are finding it increasingly tough to fulfil customer orders and meet market demands working with a less-than-sufficient workforce.

Which Industries have the Most Openings?

This tremendous surge in job openings in the U.S is primarily driven by the hospitality industry or the accommodation and food services industry. Vacancies in this industry are said to have risen by 254,000 jobs. Manufacturing and education also show a considerable increase.

What Does it mean for Job-Seekers?

As of now, the country is seeing a continuous increase in job postings and many workers changing jobs and professions. The country is also witnessing record low unemployment rates. So the picture is obviously very promising for job-seekers. All these trends together are creating new opportunities for employees, and employers are focusing more than ever on meeting employee demands to attract talent in this tight labour market. With the right skills and talent, landing a dream job with enough perks and benefits should not be difficult for deserving job-seekers.