Weekly Jobless Claim In US Less Than Anticipated, Indicates Strong Labor Market
Last week saw a much lower increase than expected in the count of filing applications in America for benefits of unemployment. These figures are indicative of strong market conditions of labor which should continue in supporting an economy that is moderately growing. When it came to initial claims of state benefits of unemployment, the figures rose by 2,000 to reach a seasonally adjusted count of 208,000 for week ending on September 14, as per data released by the Department of Labor on Thursday.
The prior week’s data was revised and it showed 2,000 additional applications received as compared to what had been previously reported. Reuters conducted a poll among economists and obtained forecast of claims rising up to 21,300 when it comes to latest week. The Department of Labor said that no states had been estimated as of last week.
On Wednesday, Federal Reserve cut rates of interest by an additional 25 points of basis. Explaining the reasons behind this move, the organization talked about risks pertaining to the lengthiest economic expansion ever resulting out of the trade war that has been going on between China and the U.S. for a year along with slowing growth of economy overseas.
Jerome Powell who is a Fed Chair spoke about his expectations from the economy, which is currently in the 11th consecutive expansion year. He expects the economy to continue expanding at moderate rates. Powell further stated that job market would remain strong.
In spite of trade tensions having significantly weighed on manufacturing and business investment, layoffs continue to remain low. In August, the economy had been able to create 130,000 job opportunities. However, there are certain concerns about the slowdown in job growth taking some shine off of the robust sector of consumer spending. This can prove to be problematic as it is a major driving force for the economy.