The number of initial jobless claims in the United States dropped last week, easing concerns about the deterioration of the job market
The number of initial jobless claims in the United States decreased by 5,000 to 227,000 last week, lower than the market's expectation of 230,000, easing concerns about the deterioration of the job market. Despite job vacancies falling to a three-and-a-half-year low, layoffs remain relatively low. A recent report from the Federal Reserve showed that the overall employment level has remained steady or slightly increased, while job seekers are facing greater difficulties. Economists expect the addition of 160,000 non-farm jobs in August, and the unemployment rate may drop from 4.3% in July to 4.2%
According to the latest information from Zhitong Finance and Economics APP, due to the low number of layoffs, the number of initial jobless claims in the United States fell last week, which may help alleviate concerns about the deterioration of the job market. The U.S. Department of Labor announced on Thursday that the seasonally adjusted number of initial jobless claims decreased by 5,000 to 227,000 people as of August 31, lower than the market expectation of 230,000 people.
As the seasonal effects from the automotive industry and hurricanes gradually fade, the number of initial jobless claims has been hovering around 230,000 since falling from an 11-month high at the end of July. Despite job vacancies dropping to a three-and-a-half-year low in July, the number of initial jobless claims has not shown signs of deterioration in the job market.
The Beige Book report released by the Federal Reserve on Wednesday stated that the employment level "remained steady or slightly increased in recent weeks." The report pointed out, "Some (Federal Reserve) districts reported that companies reduced shifts and working hours, leaving vacancies unfilled, or reduced staff numbers through natural attrition, but reports of layoffs remain rare." However, the report also added, "Job seekers are facing increasing difficulties, and job search times are getting longer."
Due to the slowdown in the labor market, some traders are betting that the Federal Reserve may cut interest rates by 50 basis points at the meeting on September 17-18.
However, economists believe that the Federal Reserve will start its easing cycle with a 25 basis point rate cut, as domestic demand in the United States remains strong.
Data shows that the number of continuing jobless claims in the United States decreased by 22,000 to 1.838 million people as of the week ending August 24, close to the level at the end of 2021, consistent with the prolonged unemployment situation.
The latest number of initial jobless claims is unrelated to the August non-farm payroll report scheduled to be released on Friday as this data is not within the survey period.
Economists expect that following an increase of 114,000 jobs in July, non-farm payrolls in August may increase by 160,000 jobs. The August unemployment rate is expected to decrease from a near three-year high of 4.3% in July to 4.2%.
U.S. stock index futures slightly narrowed their losses after the release of the initial jobless claims data in the United States