Media365
The number of Americans filing new applications for unemployment benefits fell more than expected last week, underscoring the resilience of the US labour market despite a broader slowdown in hiring.
Initial claims for state unemployment benefits dropped by 8,000 to a seasonally adjusted 208,000 for the week ended July 11, the US Labor Department said on Thursday. Economists polled by Reuters had expected claims to rise to 217,000.
The previous week’s figure was revised upward by 1,000 to 216,000.
The latest data suggests that the spike in unemployment claims seen in late May and through mid-June has eased, with filings returning to levels economists say are consistent with a “slow hire, slow fire” labour market, where employers remain reluctant to either aggressively recruit or lay off workers.
The four-week moving average of initial claims, which smooths weekly fluctuations, fell by 4,750 to 214,250, indicating improving labour market conditions over recent weeks. Meanwhile, continuing claims — a measure of the number of people still receiving unemployment benefits after their initial claim — declined by 16,000 to a seasonally adjusted 1.805 million during the week ended July 4. The insured unemployment rate remained unchanged at 1.2 per cent.
The data adds to recent evidence that the US labour market remains broadly stable. The Federal Reserve’s Beige Book, released on Wednesday, said employment increased overall in early July, with five Federal Reserve districts reporting modest to solid job gains while seven districts saw little or no change in employment levels.
The report also highlighted persistent shortages of skilled workers, particularly technicians and tradespeople.
Separately, a survey by the National Federation of Independent Business showed an increase in the share of small business owners reporting difficulty in finding qualified applicants for open positions, pointing to continued tightness in segments of the labour market.
The stronger-than-expected jobs data also weighed on gold prices, as a resilient labour market reduces expectations of near-term monetary policy easing by the Federal Reserve and dampens demand for safe-haven assets.
