US weekly initial jobless claims drop to 17-month low despite delta surge



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US weekly initial jobless claims drop to 17-month low despite delta surge

On Thursday, US Labour Department data had revealed that the number of Americans filing for first-time state unemployment aids had dropped to a 17-month low, signalling potentials of a robust US job growth in August as initial jobless claims dip below a 350,000-mark even as surging delta cases are posing a submissive threat to labour market recovery.

On top of that, the weekly jobless claims report from US Labour Department had also added that the number of layoffs had been shrunk to the lowest since mid-March 2020, however, initial jobless claims had still been hovering above a 250,000 level, widely contemplated as a plateau to a healthy labour market.

Aside from that, other economic data released earlier in the day had unveiled that a gauge of factory employment in the mid-Atlantic had spiked to a record high this month, while US manufacturing plants had increased working hours, nonetheless, US manufacturing had still been struggling amid a chilling shortage of raw materials alongside a transmutation in demands to services from goods as pandemic-wary Americans engage in outdoor activities following a vigorous vaccination push.

Meanwhile, adding that the report would highly likely to paint an upbeat growth curve in labour market recovery this month, a corporate economist at Navy Federal Credit Union in Vienna, Virginia, Robert Frick said following the data, “We can infer that hiring remains strong in August, pointing to a healthy jobs report for this month”.

US initial Jobless claims hit 17-month low

According to US Labour Department, the number of Americans applying for initial jobless claims dipped 29,000 to a seasonally adjusted 348,000 during the week that ended on August 14, remarking a fourth straight week of decline, while the US state of Illinois, Kentucky and Michigan had reported a significant scale of drop in initial jobless claims last week.

US Continuing claims, in tandem, fell 79,000 to 2.820 million over the week that ended on August 7, a level never seen since mid-March 2020.