US initial jobless claims edge higher, but economy poised for strong end to 2021

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US initial jobless claims edge higher, but economy poised for strong end to 2021

On Thursday, US Labor Department data had unveiled that the number of Americans filing for first-time state unemployment benefits rose marginally last week, though continuing claims fell further below a 2 million level, illustrating a roaring US economy which is set to close 2021 in an upbeat tenure amid a much-squeezed labor market landscape.

Aside from that, other economic data released earlier in the day had unfurled that US manufacturing output had spiked to its highest in roughly three years, while US homebuilding soared to a fresh eight-month peak despite a chronic shortage of available homes.

In the latest flashpoint of a rumbling US economy which appears to be flaring up on Q4, 2021 following a relatively dour third-quarter, the US Federal Reserve had told on Wednesday that the US Central Bank would conclude its pandemic-era bond repurchase program by March, while US Fed Chair Jerome Powell was quoted saying the ‘economy was making rapid progress towards maximum employment,’ largely justifying in the day’s weekly initial jobless claims data.

US initial jobless claims edge higher, but economy gathers steam

According to US Labor Department data, the number of Americans filing for state unemployment benefits for the first time on their lives rose 18,000 to a seasonally adjusted 206,000 during the week that ended on December 11, however, claims had been hovering comfortably between a range of 200,000 to 250,000 positions, widely considered as a sign of a salubrious labor market landscape.

Besides, continuing claims dips 154,000 to 1.845 million, while US housing starts climbed 11.8 per cent last month. Meanwhile, citing that the economy is closing in on a maximum employment, a chief economist at FWDBONDS in New York, Christopher Rupkey said, “The economy is as fully employed as it is going to get for this cycle. The 2022 economic outlook looks to be a good one”.