Weekly U.S. jobless claims fell to the verge of a 57-year low last week, the Labor Department reported Thursday – and economists are crediting the Trump Administration’s enforcement of federal immigration laws.
Compared to the previous week, new claims filed for unemployment benefits dropped by 6,000 to 194,000, remaining below 200,000 for the six straight week and nearing the 189,000 count posted in July, which was the lowest weekly total since 1969.
Economists interviewed by Reuters attributed the decline in unemployment, in part, to the Trump Administration’s fight against illegal immigration:
“Economists say strong growth in profits amid robust domestic demand, and a smaller workforce against the backdrop of retirements and an immigration crackdown by the Trump administration, were shielding workers from layoffs.”
....
"The administration's immigration policies may have tightened up the labor markets where companies are unable to find the help they need to produce their goods and services so they are holding tight to the workers they have," said Christopher Rupkey, chief economist at FWDBONDS. ‘Workers are suddenly irreplaceable in many industries.’"
The continuing low level of new unemployment benefit claims suggests that October’s unemployment rate will decline from September’s 4.2% mark, economists tell Reuters:
“Reduced labor supply is keeping the jobless rate low, and it is not a sign of labor market tightness, with wage growth cooling.”
