US weekly jobless claims hit nine-month low; productivity rebounds

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US weekly jobless claims hit nine-month low; productivity rebounds

On Wednesday, the 5th of February 2020, US Labour Department job data had revealed an upbeat portrait of US labour market, as the number of Americans filing for unemployment benefits for the first time in their lives had dropped to a nine-month low last week, suggesting a robust labour market alongside an unemployment rate hovering near a fifty-year low reading of 3.5 per cent might just ramp up the lifeline of US economy (consumer spending) to keep continuing the world’s No.

1 economy’s longest economic expansion on record. Nonetheless, despite a robust job market, other data had simmered US economic outlook, suggesting a path towards moderate growth rate as worker productivity data had missed the analysts’ forecast in December.

Meanwhile, according to US job data released on Wednesday (February 5th), initial unemployment claims decreased by 15,000 to an adjusted 202,000 during the week that ended on February 1st, the index’s lowest reading since April 2019, beating an analysts’ forecast of a reading of 215,000 jobs.

Nonetheless, US labour market productivity appeared to have lost steam at the second half of 2019, as US non-farm productivity decreased by 0.2 per cent in the third-quarter of last year, however the index had ticked up 1.4 per cent over the holiday quarter but missed an analysts’ estimate of 1.6 per cent.