U.s. Weekly Jobless Claims Plunge To Lowest Level In More Than 50 Years

The number of Americans filing for unemployment benefits has fallen to its lowest level in more than 50 years. This week’s new jobless claims dropped to the fewest since September 1969.

Matt Ott for The Associated Press:
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U.S. jobless aid applications for the week ending April 25 fell by 26,000 to 189,000, down from the previous week’s 215,000, the Labor Department reported Thursday. That’s well below the 214,000 new applications analysts surveyed by the data firm FactSet were expecting.

Filings for unemployment benefits are considered a proxy for U.S. layoffs and are close to a real-time indicator of the health of the job market.

According to High Frequency Economics, this week’s number for new jobless aid applications was the fewest since September of 1969.

The Labor Department’s report Thursday showed that the four-week moving average of jobless claims, which evens out some of the weekly volatility, came in at 207,500, about 3,500 lower than the previous week.

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MacDailyNews Take: Bodes very well for Apple!

With more Americans employed (and often seeing wage gains in a tight labor market), people have more disposable income and confidence to buy items like iPhones, Macs, AirPods, Apple Watches, and services (App Store, Apple Music, iCloud, etc.). Apple’s revenue is heavily driven by American consumer demand.

Very low jobless claims signal a healthy American economy, which boosts Apple’s largest market. Historically, Apple’s sales and stock tend to perform well during periods of low American unemployment and economic expansion.

Businesses are also more willing to invest in Apple devices, Macs, iPhones, and iPads for employees, and enterprise services (Apple Business) when the economy is strong.

In short, low unemployment means more people with jobs and money which improves the likelihood they’ll buy Apple products. This is especially positive for Apple as a premium brand that benefits from a prosperous consumer base.

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