Fall in US weekly jobless claims was more than expected

The number of Americans submitting their applications for having unemployment benefits fell more than expected, during the last week. It was consistent with strong labor market conditions and with continuous growth in job openings in America.

The initial claims for state unemployment benefits came down by 8,000, to a seasonally adjusted 211,000 for the week that ended on November 2nd. This was informed by the Labor Department on Thursday. The data for the previous week was revised to show 1,000 more applications received than reported previously.

The Economists polled by Reuters had made a forecast that this claim would fall to 215,000 in the latest week. The Labor Department reported that the claims for Kentucky, only one state were estimated in last week.

The four week moving average of initial claims was considered a better measure of the labor market trends. It irons out the week to week volatility, which increased by 250, to 215,250 last week.

The current level of unemployment benefit claims suggests a solid labor market condition. Employment grew here faster than expected, better than last October. This became possible by the firms adding 128,000 jobs. This happened in spite of a strike by workers at General Motors, which idled 46,000 employees at this automaker’s plants in Kentucky and Michigan.

The Federal Reserve has cut the interest rates last week for the third time this year. It was done to support this continuous growth in economy. A pause was signaled by the officials in the easing cycle that started in the month of July. The Central Bank reduced the costs of borrowing for the first time, since the year 2008. Jerome Powell, the Chairman of Federation, acknowledged some moderation in the pace of job growth this year, but he claimed that the job market will remain strong.

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