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Initial jobless claims in the United States fell to 196,000 in the week ended September 12, their lowest level since mid-July, according to data released by the US Department of Labor on Thursday, a day after the Federal Reserve raised interest rates by 25 basis points.
Seasonally adjusted claims declined by 10,000 from 206,000 in the previous week. The latest reading was the lowest since the week ended July 18, when claims stood at 189,000. The decline provides another snapshot of the US labour market immediately after the Federal Reserve raised its benchmark interest rate to 3.75-4 per cent on Wednesday. Speaking after the rate decision on Wednesday, Federal Reserve Chairman Kevin Warsh pointed to the labor market as a sign of strength in the US economy. One basic sign of strength is the state of Americas labor markets. The jobless rate remains low at around 4.1 percent, and both job openings and weekly hours have been increasing, Warsh said. Unemployment claims, on a four-week moving average, are running at levels consistent with full employment. So, the labor side of the Feds congressional remit is in good shape, he added. The broader trend in claims also moved lower, with the four-week average declining to about 203,000. Meanwhile, the number of people continuing to receive unemployment benefits also declined. Seasonally adjusted insured unemployment fell by 39,000 to 1.73 million in the week ended September 5, while the insured unemployment rate eased to 1.1 per cent. The Labor Department cautions that weekly unemployment claims can be volatile because seasonal factors, holidays and other recurring events can influence the figures. (ANI)
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