Follow us on:   

Jobless claims fall: US economy slow, but steady
October 27, 2016, 3:11 pm

The US job market has improved dramatically since 2013 as the unemployment rate continues to fall [AP]

The US job market has improved dramatically since 2013 as the unemployment rate continues to fall [AP]


In what is sure to boost expectations of a US rate hike before the end of the year, a new report on the job market has shown that initial jobless claims for the week ending October 22 fell by 3,000 from the week prior.

The US Labor Department said that jobless claims had fallen to 255,000 for that week, marking the 86th consecutive week that the figure is below the 300,000 mark.

The labor report adds to a general assessment from the Federal Reserve reported last week that the economy has continued to grow slow and steady, which could lead to raising interest rates late this year. Many analysts expect a rate hike in December, exactly one year after 2015’s increase.

But an increase is unlikely when the Fed meets next week.

“Outlooks are positive, although contacts in several sectors cite the upcoming presidential election as a source of near-term uncertainty, delaying some business decisions,” the Fed’s Boston district said in the report last week.

The report stated that the job market “remained tight,” with modest employment and wage growth seen across the 12 districts.

Meanwhile, long-term mortgage rates in the US reached their highest levels since June, soaring for the second week in a row.

Mortgage giant Freddie Mac said late last week that the average for a 30-year fixed-rate mortgage increased to 3.52 per cent from 3.47 per cent in early October, AP reported.

The BRICS Post with inputs from Agencies

Leave a Reply

Your email address will not be published. Required fields are marked *

Anti-Spam * Time limit is exhausted. Please reload the CAPTCHA.