Jobless Claims Hit Lowest Level Since 1973

The smallest number of Americans are looking for a job today since 1973.

Initial jobless claims for the week ending November 12 fell by 19,000 to 235,000. According to Bloomberg, filings for unemployment benefits stayed below 300,000 for the 89th straight week, which matches the longest streak seen since 1970.

Experts surveyed by Bloomberg were expecting last week's initial jobless claims to rise to 257,000. In addition, the four-week average of claims fell to 253,500 from 260,000 in the prior week.

"We're exhausting the pool of workers that we can draw from out of the unemployed," Patrick Newport, an economist at IHS Global Insight told Bloomberg. "We're approaching full employment, so we're seeing really strong job gains, but they can't continue for very long."

Mohamed El-Erian: 2 Key Implications

Speaking to Benzinga, Allianz's chief economist Mohamed El-Erian said that Thursday's data serves as confirmation of the relative strength in the U.S. labor market.

El-Erian added that there are two key implications from the report. First, now that slack has been taken out of the labor market, wage growth will be more robust going forward. Second, the report solidifies the case for the Federal Reserve to pull the trigger and boost interest rates in December.

"While absolutely necessary, the strength of the labor market is not sufficient to deliver high and inclusive growth," he added. "For that, the US also needs more comprehensive policy implementation and greater dynamism in corporate business investment."