- Jim O'Sullivan, chief U.S. economist for High Frequency Economics
The number of Americans seeking first-time unemployment benefits declines last week, highlighting the persistent strength of the labour market. Initial jobless claims, a proxy for layoffs across the country, dropped by 6,000 to a seasonally adjusted 275,000 in the week ended September 5, according to the Labor Department. Moreover, claims for the prior week were revised down to 281,000 from the initially reported 282,000. The four-week moving average of claims, which strips out weekly volatility, climbed by 500 to 275,750 last week. Claims have remained below 300,000 for 27 consecutive weeks, the longest such streak in more than 40 years. Claims below 300,000 generally indicate robust hiring and a healthy labour market.
The Labor Department said last week the US economy created 173,000 jobs in August, the weakest monthly gain since March, while the unemployment rate slid to 5.1%. That leaves Fed policy makers with a mixed picture of the world's number one economy as they head into a crucial policy meeting next week. Many economists expect the central bank to begin hiking interest rates for the first time in nearly a decade as soon as this month. However, global turmoil, coupled with a stronger Greenback and falling oil prices, has complicated that decision.
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