US Jobless Claims Beat Expectations, Come in Better Than Forecast
Arslan Butt • 1 min read
A recent report by the Labor Department reveals that US citizens filling for unemployment claims declined by 13,000 to 222k for the previous week, beating expectations for a fall to 224k instead. The better than expected jobless claims data supported the rally in Wall Street, which have been trading bullish ever since the US and China announced the partial trade deal.
The four-week average of jobless claims, a less volatile indicator of the state of the US labor market, rose slightly higher to 228k. However, the data continues to support the robustness in the overall labor market, with unemployment declining to 3.5% in November.
The number of people receiving benefits after the initial week of aid declined by 6,000 to 1.72 million for the week ending on December 14. Continuing claims’ four-week average edged higher by 19,250 to 1.70 million.
The strong labor market is supporting consumer spending and lending a significant boost to economic growth in the US, despite the continued trade tensions with China. Notwithstanding the weakness in global economic growth, the US economy has managed to continue expanding for the longest period on record, and is expected to continue moderate growth into 2020 as well.