Last week, initial filings of jobless claims have gone down to their lowest number since late June, showing that the labor market remains resilient despite a slowing economy.
The seasonally adjusted number of unemployment claims fell to 232,000 for the week that ended on Aug. 27. This displays a 5,000-count decline from the period before this and the lowest since late June, as per the Labor Department’s report, which was released on Thursday.
However, 245,000 was the number economists surveyed by Dow Jones had been looking for.
Also, continuing claims went up to 1.44 million, 24,000 more than the previous data level that had run a week behind the headline.
The figures are revealed a day before the anticipated August nonfarm payrolls report. Still, it’s outside the survey week being used by the Bureau of Labor Statistics to compile the count. Wall Street expects the report to show that August job gains, known to be volatile, will end up at 318,000.
Despite worries that the country is on the brink of recession, the jobs market has given a bulwark, which indicates that, despite record-high inflation, hiring demand is strong and consumer spending has managed to hold up.
According to a BLS report released earlier this week, job openings went up over 11.2 million and outnumbered the available worker pool by almost 2 to 1. According to data released by payroll processing firm ADP, private companies added 132,000 jobs only in August. However, the majority of economists have so far stood by with their forecast for solid growth for the said month.