US weekly initial jobless claims dip to three-month lows as pandemic subsides

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US weekly initial jobless claims dip to three-month lows as pandemic subsides

On Thursday, US Labour Department data had unveiled that the number of Americans filing for first-time state unemployment benefits had hit a fresh three-month low last week, mostly boosted up by an increase in factory activity alongside a rapid ease in delta cases.

In the latest flashpoint of an upbeat labour market data released earlier in the day, a sharp depreciation in US weekly initial unemployment claims, a closely monitored tracker to US economy’s health, had vindicated that a gradually healing US labour market might begin to gather steams, as pandemic wave subsided and small- and medium-sized businesses had spurred up hiring.

Besides, the Labour Department report also had added that the number of jobless people making their ends meet on state unemployment rolls, had dipped to the lowest since late-September. Apart from that, in latest signs that the US economy would likely to wrap up a near-pluperfect 2021 with a robust texture, latest upbeat initial jobless claims data came forth just days after Tempe-based ISM (Institute of Supply Management) had said in a statement that its index for both US manufacturing and non-manufacturing activity had stepped up last month, while new orders for US-borne factory goods rose sharply, suggesting a jubilant Q4, 2021 ahead.

US initial jobless claims fall sharply as delta subsides

According to US Labour Department data, the number of Americans filing for state unemployment benefits had dropped 38,000 to a seasonally adjusted 326,000 during the week that ended on October 2, while unadjusted claims fell 41,431 to 258,909 last week.

Meanwhile, referring to a pick-up in US employments last week following a few weeks of annoyances, a chief economist at FWDBONDS in New York, Chris Rupkey said, “The labor market is back on track after a few weeks of rising claims threw a question mark into the markets' understanding of just how solid the economic outlook really is.

The Fed has the evidence it needs to start paring back its emergency stimulus purchases when it meets next month”.