First-time applications for US unemployment benefits fell last week to the lowest level since 1969. This indicates that layoffs remain muted, reflecting a stable labor market. The number of people already receiving unemployment checks also declined, suggesting that employers are holding onto workers.

The number of Americans filing claims for state unemployment benefits dropped by 10,000 to a seasonally adjusted 205,000 in the week ended November 20. Economists surveyed by Bloomberg had forecast 210,000 claims. The Labor Department’s report also showed the number of continuing claims fell by 23,000 to 1.84 million.

This trend of declining jobless claims suggests that the labor market is continuing to recover from the pandemic. Despite supply chain disruptions and rising inflation, companies are hesitant to lay off workers. The low level of claims is a positive sign for the economic outlook, as it implies that more people are employed and earning income, which can fuel consumer spending.