Unemployment Claims Declined
The US jobless claims dropped for the first time in a month, suggesting that labor market remains sustained. The Labor Department reported that initial fillings for state pensions fell 3,000 to a seasonally adjusted 247,000. Applications remained under 300,000, which is a sign of strong labor market, for 123 consecutive weeks (the longest period since 1970). The jobless rate is at 4.4%, suggesting that full employment will be reached soon. Such good results might influence Fed’s decision to increase rates. 4-week moving average of fillings increased 2,250 to 245,750. The amount of people that receives pensions after getting initial help reduced 20,000 to 1.95M. Continuing claims stayed under 2M during thirteen consecutive weeks. 4-week moving average of continuing claims lifted 2,250 to 1.95M.