Applications for first-time unemployment benefits rose slightly last week to 207,000, the Labor Department reported. The reading remained near its more than 50-year low, suggesting that the soaring number of Omicron cases isn’t having much effect on layoffs. Economists had expected initial jobless claims to total 195,000.
The number of people filing new unemployment claims declined last week, remaining near 52‑year lows. The Labor Department reported 198,000 people applied for first-time unemployment benefits last week. Economists had expected a reading of 205,000. The extremely low number of people applying reflects the reluctance of businesses to lay off workers when qualified labor is so hard to obtain.
Borrowing money to buy stocks adds buying pressure during a move up, but can be catastrophic on the way down. One of the worst phrases a trader will ever hear is ‘margin call’—when a broker demands more cash to cover a losing position or else have it forcibly liquidated. In down markets, these forced liquidations contribute to the crashes that often occur near bottoms
American workers continued to quit their jobs at a record pace, giving rise to what experts are calling “The Great Resignation”. The Labor Department reported 4.2 million workers quit their jobs in October following a record-setting 4.4 million in September. The chief reason the majority of people are quitting is because they are finding better or higher paying jobs.
The U.S. gained a meager 210,000 new jobs in November, a disappointing increase that shows the worst labor shortage in decades is still weighing on the economic recovery. The increase in hiring was far below economists’ forecasts. The consensus was for 573,000 new jobs. The U.S. jobless rate, meanwhile, fell to 4.2% from 4.6% and touched a new pandemic low.
U.S. stocks declined in the holiday-shortened week as news about the emergence of a new, potentially more contagious, coronavirus variant in South Africa triggered a sharp sell-off in equities around the world. The Dow Jones Industrial Average declined 703 points for the week closing at 34,899, a decline of -2.0%.