America has been recently witnessing an increment in claims filed foe unemployment benefits, especially during the last week. The trend is seen as a consequence of the temporary displacement of workers caused by Hurricane Florence . However, the underlying current has significantly led to ‘tightening labor market’
As per the initial claims made by Labor Department said on Thursday state unemployment claims rose 12,000 to a seasonally adjusted level of 214,000 for the week ended Sept. 22 and claims fell to 202,000 during the week ended Sept. 15, which was the lowest level since November 1969.
The economist polls arranged by the Reuters have released a forecast that indicates rise in claims to 210,000 in the latest week given the effect of Hurricane Florence that severely affected parts of the South last week.. It has been a major infrastructural blow causing floods and displacement.
As per the information from The Labor Department, they have unadjusted claims in high numbers from South and North Carolina soon after the Hurricane. Further analysis of labour market suggests that average of initial claims, considered a better measure of labor market weekly volatility rose by 250 to 206,250 in last week itself.
On the other hand, as per statistics from labor market Job openings hit an all-time high of 6.9 this year in July. Which continues to strengthen the economy pushing economy close to full employment, with nonfarm payrolls increasing by 201,000 jobs and annual wage growth reaching its record gain in more than nine years.
Federal reserve has too raised the interest rates corresponding to the job gains that have found to be “strong, on average” for continued trend in the labour market.
Further, Thursday unemployment claims report suggest that number of people receiving benefits after an initial week of aid increased 16,000 to 1.66 million for the week ended Sept. 15 and the fourth weekly average of the so-called continuing claims fell 12,250 to 1.68 million which are considered as the lowest level since November 1973.
Going by the current four-week average, continuing claims fell between the August and September, suggesting considerable improvement in the unemployment rate. The jobless rate was at 3.9 percent as identified in August of this year with a scope of improvement.