US weekly jobless claims fall below 350,000 as layoffs hit 24-year low

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US weekly jobless claims fall below 350,000 as layoffs hit 24-year low

On Thursday, US Labour Department data had unveiled that the number of Americans filing for first-time state unemployment benefits fell below 350,000 last week as layoffs had dipped to their lowest level in more than 24 years last month, pointing towards a submissive labour market recovery even though delta cases continued to surge.

In the latest flashpoint of a gradually healing US labour market, the US Labour Department’s weekly jobless claims report, often contemplated as the most-timely barometer to the economy’s health, had illustrated that the number of Americans having been on state unemployment benefits tumbled to a 17-month low as of third week of August.

More importantly, a sharp decline in layoffs would likely to offset a gruesome concern over the pace of US economic recovery even if Friday’s nonfarm payrolls report falls short of expectation, suggest analysts. However, on the flipside of the coin, another perspicacious bunch of Wall Street analyst were quoted saying that the latest drop in layoffs were largely prompted by a chronic labour shortage with businesses vying to vent out a way to hold on workers ahead of a busy holiday season.

Meanwhile, voicing a cautiously optimistic tone, a chief economist at FWDBONDS in New York, Chris Rupkey said following the announcement, “Regardless of tomorrow's report, keep in mind that the weekly jobless figures say the labor market screws continue to tighten.

There is no sign that the Delta variant is leading to job losses across the country”.

US layoffs hit 24-year low, initial jobless claims fall

According to US Labour Department data, the number of Americans applying for state unemployment benefits for the first time in their lives dropped 14,000 to a seasonally adjusted 340,000 for the week that ended on August 28, remarking the lowest level since mid-March 2020, however, weekly initial claims still remained well above a 250,000-mark, widely considered as an indicator to a salubrious labour market landscape.

Besides, continuing claims dropped 160,000 to a seasonally adjusted 2.748 million after hitting a record 6.149 million on early-April last year. In tandem, a substantial scale of decline in jobless claims had been found in the US states of California, Illinois alongside Virginia, though Ohio and Missouri had surprisingly reported larger-than-anticipated increases.