Brace for impact because the July jobs report is shaping up to be a monster. The Department of Labor has reported that initial claims for unemployment insurance fell by 26,000 to 255,000, the lowest level since November 24, 1973.
As Business Insider points out, that’s a time when Richard Nixon was US President, and before Greek prime minister Alexis Tsipras was born.
Those statistics arrived just ahead of the much-anticipated report from the Bureau of Labor Statistics. That report will drop on Friday, August 7.
We know the economy in July added 223,000 jobs while unemployment fell to a very low 5.3%, the lowest level since April 2008. The report follows a strong May in which 280,000 jobs were created.
If jobs numbers hold true, it will likely fuel more speculation that the Federal Reserve will raise interest rates in September or December.
The four-week moving average of claims dropped 4,000 to 278,500 last week, Pantheon Macroeconomics’ Ian Shepherdson said in a note to clients, but this rolling average is near its absolute low hit a few months ago.
“What’s clear from the trend, though, is that employers are holding tightly onto their staff; this is the flipside of the difficulty they report in finding qualified people,” Shepherdson wrote. “In short, yet more evidence that the labor market is tightening.”