Notifications Bell

Unemployment Claims reached a 52-year low

Unemployment Claims reached a 52-year low

Significant decline of the US weekly jobless claims

Initial unemployment claims reached the lowest level since November 15, 1969, with figures coming in at 199,000. The report single-handedly beat the 259,000 forecasted.

Despite the Labor Department not indicating any particular factors that caused the significant decline, analysts believe it was partly due to seasonal adjustments.

At the same time, the continuing claims fell to 2.05 million, reaching a new pandemic-era low and pointing to a tightening of the labor market.

The positive data comes when the surging inflation in the US is running at its fastest pace in 30 years. Ports and supply chains have been important contributors to higher prices as manufacturers and service providers meet surging demand.

Moreover, the weekly unemployment claims decline might get Fed’s, who has kept crisis-level policies in place regardless of the improvement in the job market. The Fed has already announced a gradual decrease in the monthly bond purchases, indicating that it might raise interest rates in 2022.

Sources: cnbc.com, forexfactory.com

This information prepared by sc.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

This information is prepared for general circulation. It does not have regard to the specific investment objectives, financial situation or the particular needs of any recipient.

You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent.

Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of sc.capex.com