Economic Report: Initial jobless claims fall to levels not seen since March 1973

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The last time U.S. jobless claims were as low as they are now was in 1973.

The numbers: Initial jobless claims, a way to measure layoffs, sank by 22,000 to 222,000 in the week ended Oct. 14. That’s the lowest figure since March 1973 and well below the 244,000 MarketWatch forecast.

The more stable monthly average of claims declined by 9,500 to 248,250, though it remains somewhat elevated because of the recent hurricanes.

The number of people already collecting unemployment benefits, known as continuing claims, decreased by 16,000 to 1.89 million. That’s also a 44-year low.

What happened: New claims for benefits have fallen sharply after a spike last month tied to hurricanes Harvey and Irma, whose disruptions temporarily put many people out of work. Claims are now essentially back to normal in Texas and Florida.

One caveat: Initial claims in Puerto Rico still appear to be artificially low because of major power outages that have made it hard for workers to file applications.

Yet even if power were fully restored, the level of claims in Puerto Rico would not rise enough to alter the broader trends.

Big picture: The U.S. labor market is the strongest in at least a decade in a half, reflecting a sturdy economic expansion now in its ninth year.

The 4.2% unemployment rate is the lowest since 2000 and the biggest complaint among business leaders is a shortage of skilled workers to fill a record number of job openings.

Market reaction: The Dow Jones Industrial Average

DJIA, +0.70%

 was set to open lower in Thursday trades.