US labor market shows signs of strength

US labor market shows signs of strength -
US labor market shows signs of strength -

The number of Americans filing new grant applications for unemployment rose less than expected last week, suggesting that conditions in the labor market continued to strengthen.

Initial claims for state benefits for unemployment rose by 3,000 to a seasonally adjusted 270,000 for the week ended August 1, the Labor Department said Thursday. Applications for the previous week were not revised.

This was the twenty-second consecutive week that orders remained below the threshold of 300,000, which is linked to a strengthening labor market.

Economists had expected claims to rise to 273,000 last week.

Applications are volatile during the summer, when automakers assembly plants usually close for the annual retooling.

Some firms keep the production lines running, which can impact the model that thegovernment uses to process the data for seasonal variations.

However, an analyst with the Department of Labor said there were no special factors that influenced the report.

The four-week moving average of claims, considered a better measure of trends in the labor market because it eliminates the weekly volatility, fell by 6,500 to 268,250 last week.

US stock futures and the prices of Treasury bonds rose slightly after the data known. The dollar also posted gains against the yen and the euro as a result of the report.

The data requests for unemployment benefits have no impact on the government report ofnonfarm payrolls in July, which will be released on Friday.

According to a Reuters poll of economists, nonfarm payrolls probably would have increased by 223,000 last month as in June.

Although the growth in jobs has slowed from a more intense pace last year, many economists believe that the US labor market is getting close to full employment. Last week, the Fed described the developments in the sector as “solid” .

The Fed , the market expected to eventually raise the interest rates this year for the first time in nearly a decade, also said the weakness in the labor market had decreased “since the beginning of this year.”

The report applications for jobless benefits Thursday showed that the number of people still receiving government benefits after an initial week of aid fell 14,000 to 2.26 million in the week ended August 25. –