US Unemployment claims drop below outlook: 254k vs. 267k

US Unemployment claims drop 11,000 from 265,000 last week, signaling the positive tendency across the business sector in the US. What has affected the US jobless claims last week?

10 November, AtoZForex Amidst the social unrest and uncertainty in the markets on the outcome of the US election, US jobless claims data has indicated a fall of 11,000.

US Unemployment claims drop

As Donald Trump wins the Presidential elections, gold surges almost 5% to six-weeks highest level. Oil appeared to slide to its lowest level since August. Yet, the global markets have rebounded, where the oil and gold prices have stabilized. 

Previous jobless claims data has appeared below-than-expected, as that time the US Unemployment claims dropped 3,000 to 258,000, signaling the positive trend across the business sector in the US.

Market expectations for the week ending 5th November were at 267,000, where the actual figures indicated 254,000 Americans filing for unemployment benefits. The unemployment claims from the US from last week indicated fewer jobless claims, implying a signal that businesses are currently holding onto their employees and that the hiring across the US is mostly firm.

The longest streak since 1970

The applications for unemployment benefits are a substitute for layoffs, therefore, the low level implies that the firms are cutting off fewer jobs. Additionally, that means the companies are willing to hire more people. Even though hiring growth has slowed down in the past few months, it is still appearing firm enough to diminish the unemployment over time.

According to the US data latest unemployment claims release, the 4-week moving average was recorded at 259,750, signaling a gain of 1,750 from the previous week’s average.

US government  mentioned that there were no special factors impacting this week’s jobless claims. Moreover, this jobless claim release marks 88 consecutive weeks of initial claims below 300,000, the longest streak since 1970.

Also, as markets have mostly recovered from the “Trump shock”, the improvement seasonally adjusted unemployment rate was at 1.5 percent for the week ending October 29. It has remained the same from the previous week’s unrevised rate.

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