US initial jobless claims drop by 5,000

(Sharecast News) - Americans lined up for unemployment benefits at a decelerated pace last week, according to fresh data from the Department of Labor, but underlying trends suggested the US labour market remains in a holding pattern. Initial jobless claims fell by 5,000 to a seasonally adjusted 229,000 in the week ended 23 August, slightly below consensus forecasts of 230,000, while continuing claims, which track those still receiving benefits, dipped by 7,000 to 1.954m in the prior week.

The four-week moving average, which aims to strip out week-to-week volatility, increased to 221,750, up 4,500 from the previous print, reflecting a gradual uptick in claims over the past month. The insured unemployment rate held steady at 1.3%.

While layoffs remained at historically low levels, hirings have slowed markedly, with employment gains averaging just 35,000 per month over the past quarter, down from 123,000 during the same period a year earlier.



Reporting by Iain Gilbert at Sharecast.com