US Labor Department released its weekly jobless claims numbers. The latest data shows that the labor market remains buoyant in the US. The number of people who filed for jobless insurance benefits reduced 10,000 to 210,000 for the week ended February 24 vs. prior week’s level, which is the lowest number reported in over 48 years.
On the continuing claims front, the number of people who are already receiving benefits surged 57,000 to 1.93 million for the week ended February 17. Average monthly fresh claims decreased 5,000 to 220,500 last week, the least number recorded in the last 48 years.
The report also added that the claims filed by beneficiaries were on the higher side from Puerto Rico and the Virgin Islands due to the hurricane turmoil witnessed by them.
For the uninitiated, anything below the 300,000 range in claims is a harbinger of the healthy job market. The tightening of labor market along with improved wages would result in the higher consumer spending. It’s worth noting that the unemployment rate now stands at 4.1%, which is at a 17-year low level.
With rising inflation and the resilient labor market, there are chances for Fed coming up with interest rate hikes to keep the macro factors intact. For 2018, Federal Reserve expects to do at least three hikes. With higher consumer spending and increased inflation, one would not be surprised even if there are four hikes in this year.
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to