U.S. Jobless Claims Drop Below 1 Million For First Time Since Mid-March
August 13 2020 - 5:15AM
RTTF2
A report released by the Labor Department on Thursday showed
first-time claims for U.S. unemployment benefits declined by much
more than anticipated in the week ended August 8th.
The Labor Department said initial jobless claims tumbled to
963,000, a decrease of 228,000 from the previous week's revised
level of 1.191 million.
Economists had expected jobless claims to slide to 1.120 million
from the 1.186 million originally reported for the previous
week.
With the much bigger than expected decrease, jobless claims
dropped below 1 million for the first time since the week ended
March 14th.
"The drop in claims reflects economic reopening, but it also
suggests the expiration of federal supplemental unemployment
benefits may have convinced some people to stop collecting and find
work," said Chris Low, Chief Economist at FHN Financial.
He added, "Alternatively, people could be falling off rolls
because they no longer qualify for assistance in the absence of the
emergency expansion of eligibility."
The less volatile four-week moving average also fell to
1,252,750, a decrease of 86,250 from the previous week's revised
average of 1,339,000.
Continuing claims, a reading on the number of people receiving
ongoing unemployment assistance, also slumped by 604,000 to 15.486
million in the week ended August 1st.
The four-week moving average of continuing claims plunged to
16,169,500, a decrease of 454,500 from the previous week's revised
average of 16,624,000.
Last Friday, the Labor Department released a separate report
showing employment increased by more than expected in the month of
July.
The Labor Department said employment jumped by 1.8 million jobs
in July after surging up by 4.8 million jobs in the previous month.
Economists had expected employment to increase by 1.6 million
jobs.
With the continued increase in employment, the unemployment rate
dropped to 10.2 percent in July from 11.1 percent in June. The
unemployment rate was expected to dip to 10.5 percent.
US Dollar vs TRY (FX:USDTRY)
Forex Chart
From Mar 2024 to Apr 2024
US Dollar vs TRY (FX:USDTRY)
Forex Chart
From Apr 2023 to Apr 2024