Labor shortage, surging economy give workers more job security

The numbers: The number of Americans who applied for unemployment benefits in mid-September fell to a fresh 49-year low, more proof that a growing labor shortage and surging economy have given workers greater job security.

Initial jobless claims, a rough proxy for layoffs, fell by 3,000 to 201,000 in the seven days ended Sept. 15. That’s below the 208,000 MarketWatch forecast and marks the lowest level since Nov. 12, 1969.

The monthly average of new claims, meanwhile, slipped by 2,250 to 205,750, the government said Thursday. That’s also a 49-year low.

The number of people already collecting unemployment benefits declined by 55,000 to 1.65 million. Known as “continuing” claims, they have fallen to the lowest level since 1973.

What happened: The storm surge caused by Hurricane Florence in the Carolinas likely contributed to the low level of claims last week. Applications in South Carolina fell by an unusually large number, indicating fewer people filed claims due to government office closures and lack of power.

Nonetheless, layoffs in the U.S. have been falling steadily for eight years and they soon could drop below 200,000 for the first time in 50 years.