"The labor market continued to improve, with solid job gains and declining unemployment"
- FOMC
The number of Americans applying for jobless benefits rose less than expected last week, suggesting labour market conditions continued to strengthen. Initial claims for unemployment benefits rose 3,000 to a seasonally adjusted 270,000 for the week ended August 1, according to the Labor Department. It was the 22nd successive week that claims remained below the 300,000 threshold, which is associated with a strengthening labour market. Economists had predicted claims to rise to 273,000 last week. The four-week moving average of claims, considered a better gauge of labour market trends as it trips out week-to-week volatility, declined 6,500 to 268,250 last week.
US private employers hired fewer workers in July than expected, reducing expectations of a robust jobs data in the government's payrolls report due Friday. American companies took on 185,000 workers in the reported month, which was the smallest increase since April and compared with economists' forecast for a 215,000 gain. The US Labor Department's more comprehensive non-farm payrolls report is expected to show total US employment to have increased by 223,000 jobs in July. The unemployment rate is seen to remain for a second month at 5.3%, the lowest level since April 2008.
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