US initial jobless claims fall to lowest level in 7 months
livemint.comApplications for US unemployment benefits fell to the lowest level since February, underscoring businesses’ reluctance to let go of workers. Initial unemployment claims decreased by 13,000 to 216,000 in the week ended Sept. 2, Labor Department data showed Thursday.
The figure was lower than all forecasts in a Bloomberg survey of economists. Continuing claims, which are a proxy for the number of people receiving unemployment benefits, dropped to 1.68 million in the week ended Aug. 26.
That’s the lowest level since July. The labor market — while gradually softening — has proved a vital support to the economy. Solid hiring and limited layoffs have given consumers the wherewithal to keep spending, fueling optimism that the US can skirt a recession.
The claims data can be choppy from week to week, especially around holidays, and this period preceded Labor Day. The four-week moving average in initial claims, with smooths out some of the volatility, declined to 229,250. On an unadjusted basis, initial claims edged lower, led by declines in Ohio and New York.
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