US Jobless Claims Lowest in Five Months

Filings for U.S. unemployment benefits dropped last week to match the lowest level since April, a sign the labor market remains healthy even as hiring moderates.

Jobless claims declined by 8,000 to 252,000 in the week ended Sept. 17, a Labor Department report showed Thursday in Washington. It was the largest drop since early July. The median estimate in a Bloomberg survey called for 261,000.

Applications for unemployment insurance are close to a four-decade low as companies focus more on filling available positions than on trimming staff. Federal Reserve officials projected the labor market would “strengthen somewhat further” in announcing a decision Wednesday to hold off on raising interest rates.

Estimates in the Bloomberg survey ranged from 255,000 to 270,000. The prior week’s reading was unrevised at 260,000.

Filings have been below 300,000 for 81 straight weeks — the longest streak since 1970 and a level economists say is typical for a healthy labor market.
Claims in one state, South Carolina, were estimated last week and there was nothing unusual in the broader set of data, according to the Labor Department.
The four-week average of claims, a less-volatile measure than the weekly figure, dropped to 258,500 from 260,750 in the prior week.

The number of people continuing to receive jobless benefits declined by 36,000 to 2.11 million in the week ended Sept. 10, the lowest level since May. The unemployment rate among people eligible for benefits fell to 1.5 percent from 1.6 percent. These data are reported with a one-week lag.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell