US jobless claims hit 49-years low, labor market bolsters

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US jobless claims hit 49-years low, labor market bolsters

On Thursday, the 4th of April 2019, data revealed from US Labor Department had unveiled that the number of US citizens filing applications for the unemployment benefits for the first time had dropped to a nearly 50-year low, indicating a continued strength in the US labor market despite a slowing economic growth.

Although the initial jobless claims had hit a record low, a lack of momentum in the economic activity had left its mark and job cuts in the US-based companies had been the highest in Q1, 2019 since 2015, another set of data revealed on Thursday (April 4th).

Despite at least four tumultuous factors casting shadows over US economy such as a trade abrasion with China, sluggish global growth, fading stimulus from a $1.5 million tax incentive package and Brexit uncertainties, United States had been well on-route to celebrate its longest economic expansion.

Addressing to a change in economic trend, chief economist at Naroff Economic Advisors in Holland, Pennsylvania, Joel Naroff said, “We are at a point of inflection where the overall economic trend is changing. That would account for at least some of the volatility and contradictory nature of the data.

It would also point to a slowdown not a crash”. According to the data released on Thursday (April 4th), the initial jobless claims had curbed by 10,000 to a seasonally adjusted 2,02,000 for the week ended in March 30th, remarking its lowest level since December 1969.