US jobless claims fell with stronger than expected pace

July 13, 2018 1:11 pmComments Off on US jobless claims fell with stronger than expected paceViews: 14

US jobless claimsThe US jobless claims fell during the last week with stronger than expected pace, continuing to stay close to the 49-year low reached two months ago. This is a sign of continued strong performance in the labor market the world’s leading economy.

The US jobless claims for the week to July 7th dropped by 18,000 to 214,000, with an average forecast of financial markets at 225,000. However, jobless claims remain close to the record low of 209,000, reached in the week to April 21st (the lowest level since the beginning of December 1969).

Тхе аpplications for unemployment benefits remain below the important 300,000 for more than three years (for the 175th week in a row), the longest period of such low social welfare applications since the 1970s however, the US population and workforce were far smaller in size. As a percentage of the total labor force, applications for unemployment benefits remain at one of the lowest levels since the 1960s.

However, it should be borne in mind that the latest data are influenced by seasonal factors such as the Independence Day on July 4, when state institutions were closed, including those handling unemployment claims. The current period of the year is also characterized by the fact that most car companies in the US have planned temporary redundancies to reorganize and retrofit their factories.

At the same time, jobless claims on four-week average fell for the week to July 7 with 1,750 to 223,000, staying close to their record bottom last month.

Today’s data is yet another evidence of a continued strengthening of the US labor market, as confirmed by official US data earlier this month on the labor market and the US unemployment rate in June.

Comments are closed