‘It is looking like the labor market has hit its peak for this economic cycle’

“There are massive changes proposed in the tax structure that business and individuals have paid for decades and to think business and spending will continue on as it has until it is known what we will owe to Uncle Sam is a little naïve,” he added.

Continuing claims remain at at 17-year low, in a sign that the job market is still strong. Meanwhile, initial jobless claims are used as a real-time proxy for the pace of layoffs since people usually file for benefits soon after they lose their jobs.

The four-week moving after clocked in at 242,250, a drop of 500 from the prior week’s revised average.

“….it is looking like the labor market has hit its peak for this economic cycle, and the Trump economics team is behind the curve when it comes to its assessment that it can create 25 million jobs the next ten years,” Rupkey added.

“The weekly jobless claims suggest the labor market is tight as a drum for this cycle anyway, with further improvement unlikely, now that all those left unemployed in the wake of the recession and financial crisis have found work.”