U.S jobless claims hit a 5-week low
President Trump may have lost the battle to replace Obamacare, but his claim to be strong on jobs is holding up. A resilient Labour Department report released yesterday showed that filings for unemployment benefits in the world’s largest economy have declined to a five-week low.
25,000 fewer Americans claimed unemployment benefits last week (ending April 01). This is significantly fewer claims than was forecast (234,000 against estimates of 250,000), shoring up economic fundamentals in light of a tough month for Mr. Trump. The weekly decline in unemployment benefits claims between last week and the one preceding was also the biggest since April 2015.
The total number of people receiving benefits also dropped to the week ending March 25 by 24,000. At this point (currently, the most recent available statistic) 2.03 million people were receiving unemployment benefits. Big states California, New York, and Pennsylvania also managed to outperform last week, more than reversing an increase in claims from the previous week.
Economists consider weekly unemployment benefits claim filings at 300,000 and under as demonstrative of a healthy labour market. Current claims are much lower, hovering close to the lowest level since the early 1970s. This is a strong indication that U.S. employers are reluctant to reduce staff due to high demand and a shortage of workers with the necessary skills, attributes, and experience.
Later today, the Labour Department is scheduled to release payroll data that, according to Bloomberg, is projected to show the addition of 180,000 jobs in March – down from 235,000 in February.
The opinions in this article do not reflect those of Dominion Fund Management Limited, and in the instance of any forward-looking statements, these should not be construed as advice.
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