US Initial Jobless Claims Fell, Indicating Strength of Labor Market

Forex News

The US initial unemployment claims unexpectedly fell last week, suggesting strength of the American economy and labor market, despite ongoing trade tensions between the United States and other countries.

The US Labor Department reported, that initial jobless claims fell by 6.000 to a seasonally adjusted 213.000 for the week ended August 4. Economists had forecast claims rising to 220.000 in the latest week. Data for the prior week was revised to show 1.000 more applications received than previously reported.

The report also showed the number of continuing claims increased 29.000 to 1.76 million in the week ended July 28. The four-week moving average of the so-called continuing claims rose 3.000 to 1.75 million.

Unemployment claims dropped to 208.000 during the week ended July 14, which was the lowest reading since December 1969.

The US economy grew by 4.1% yoy in the second quarter, the fastest in nearly four years and created 157.000 jobs in July. The slowdown in hiring likely reflected a shortage of qualified workers. A report on Tuesday showed there were 6.7 million unfilled jobs in June.